- FTSE 100 down 0.4%, FTSE 250 falls 0.6%
- UK retail sales contract in October, business growth stalls in November
Nov 21 (Reuters) - London's main stock indexes plunged on Friday, headed for weekly losses, as concerns over tech valuations and Federal Reserve's hawkish stance rattled global markets, while defence shares slid amid signs of potential progress toward peace in Ukraine.
As of 1222 GMT, the blue-chip FTSE 100 index fell 0.4%, erasing Thursday's brief recovery, while the mid-cap FTSE 250 index dropped 0.6%, on pace to extend its losing streak to an eighth consecutive session.
Thursday's global rally following chip bellwether Nvidia's upbeat forecast proved short-lived as worries of a potential AI bubble resurfaced and a mixed U.S. jobs report left Fed rate-cut prospects unclear.
Both UK stock indexes poised to register even steeper weekly losses than those seen in April, when markets were roiled by U.S. President Donald Trump's sweeping tariff announcements.
Aerospace and defence stocks fell 3.2% on the day to their lowest in three months, as investors monitored developments around a new U.S.-drafted plan to end the Russian war in Ukraine.
Defence and engineering contractor Babcock dropped 0.7% even after it reported a 19% jump in first-half profit and forecast further growth this year.
Banking stocks drifted lower by 0.7%, with heavyweights HSBC Holdings and Barclays dropping about 1%.
Precious metal miners lost 3.6% as gold prices retreated more than 1%, while industrial metal miners declined 1.7% after copper prices sank to their lowest level in over two weeks.
Domestic economic data also added to the gloom. Retail sales contracted in October alongside weakening household sentiment, while business growth stalled as November's PMI dropped.
Companies are now awaiting next week's budget announcement, where finance minister Rachel Reeves is expected to implement additional tax increases.
Among individual movers, fast-fashion retailer ASOS plunged 8.7% after the company forecast lower annual profit than analysts' expectations.
Reporting by Utkarsh Tushar Hathi; Editing by Shreya Biswas
Source: Reuters