Feb 13 (Reuters) - Britain's FTSE indexes were subdued on Friday, tracking a sombre mood globally in a week that was marked by AI-disruption worries, while defence stocks got a lift as investors priced in greater European cooperation that could boost the sector.
The blue-chip FTSE 100 (.FTSE), and the mid-cap FTSE 250 (.FTMC), slipped 0.1% each at 1140 GMT. Still, the indexes were on track for small weekly gains.
A wave of artificial intelligence tool releases since late January has triggered bouts of volatility in global markets, as investors tried to weigh the impact of newer models on traditional businesses.
In the UK, much of the declines were seen in the technology sector (.FTUB1010), life insurers (.FTNMX303010), and banks (.FTNMX301010), opens new tab. The sectors are on track for weekly losses of over 4% each.
On Friday, however, tech stocks rebounded with a 3.8% gain, with RELX (REL.L), gaining 5.4%, while other stocks that took a hit in the selloff such as credit analytics firm Experian (EXPN.L), added 4.3%.
Defence stocks (.FTNMX502010), also got a lift, adding 2% as investors assessed a report that said Prime Minister Keir Starmer plans to push a multinational defence initiative at the Munich Security Conference this weekend.
Weighing on the FTSE 100 were miners such as Rio Tinto (RIO.L), and Antofagasta (ANTO.L), that lost over 2% each, tracking lower copper prices.
On the earnings front, NatWest (NWG.L), reported a 24% jump in annual profit and set more ambitious performance targets as it steps up investment in Britain's costly but potentially lucrative wealth-management market.
The British bank's shares, however, fell 3.3% as analysts said much of the upgraded targets were priced in.
The week also brought data that showed Britain's economy grew just 0.1% in the fourth quarter, matching the previous quarter's pace and partly reflecting uncertainty in the run-up to finance minister Rachel Reeves' November budget.
Investors are pricing in a 63.4% chance that the Bank of England will lower borrowing costs by 25 basis points when it meets in March.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shailesh Kuber
