British shares log weekly loss

London stocks slipped on Friday, dragged down by commodity and travel shares on concerns around fresh Covid-19 curbs in Europe, while rising bets about rate hikes following strong economic data pushed the FTSE 100 index to its first weekly loss in four.

The blue-chip FTSE 100 closed 0.5 per cent lower, while the domestically focussed mid-cap FTSE 250 index ended 0.4 per cent down.

Oil majors BP and Shell slipped 2.9 per cent and 3.1 per cent, respectively, as crude prices sank amid a resurgent pandemic in Europe. Banks dropped 1.7 per cent.

Carriers Ryanair, British Airways-owner IAG, Wizz Air, EasyJet, Holiday Inn owner , Premier Inn owner Whitbread and caterer Compass Group slipped between 2.3 per cent and 5.2 per cent after Austria said it will reimpose a full Covid-19 lockdown, while neighbouring Germany warned it may follow suit to tackle a new wave of infections.

Lockdown anxiety also overshadowed data showing British retail sales in October rose by more than expected, adding to recent signs that a slowdown in the economy might have abated slightly.

Retailers like WH Smith PLC and Ocado Group rose 1.2 per cent and 6.8 per cent, respectively.

“People are bringing forward purchases they would have made in November and December. Consumers are being very cautious because of the uncertainty around the economy, high inflation, squeezing household incomes, squeezing disposable incomes and higher taxes,” said Craig Erlam, analyst at Oanda.