UK’s FTSE 100 slips after US jobs data, still posts weekly gain

UK’s FTSE 100 edged lower on Friday as financial and industrial stocks weighed on the benchmark index after strong U.S. jobs data pointed to hefty rate hikes by the Federal Reserve, triggering a global selloff.

The FTSE 100 slipped 0.1%, while the mid-cap FTSE 250 shed 1.6%. Data showed the US labour market remained tight, giving the Fed cover to continue on its path of raising interest rates aggressively.

“The lower-than-expected unemployment rate fuels the Fed hawks and weighs on overall sentiment,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said. Economy-sensitive financial stocks such as banks and insurers fell 0.5% and 1.3%, respectively. Industrial stocks declined 2.3%, reports Reuters.

Nevertheless, the blue-chip and mid-cap indexes posted weekly gains following three weeks of steep losses.

Risk assets have taken a hit this year as central banks globally undertake monetary tightening to tame surging price pressures, with the FTSE 100 shedding 5.3% so far this year.