London, April 24, 2026, 18:55 BST
Britain’s main stock indexes ended the day in the red on Friday. The FTSE 100 shed 77.93 points, a drop of 0.8%, settling at 10,379.08. Investors were in risk-off mode heading into the weekend. The FTSE 250, tracking more domestically oriented mid-caps, slipped 0.8% as well, closing at 22,582.81. Both benchmarks finished the week down 2.7%.
This shift hit just as London stocks were clawing back ground following the U.S.-Iran ceasefire news. The losses on Friday wiped out those advances. Crude held above $100 a barrel, and investors watched for any indication that Iran talks might resume.
The Bank of England’s latest warning turned up the heat. Deputy Governor Sarah Breeden, speaking to the BBC, flagged that “there’s a lot of risk out there and yet asset prices are at all-time highs,” arguing that equities aren’t pricing in all the threats facing the global economy. She singled out private credit—lending by non-bank funds to companies—and high-flying AI stocks as areas drawing close scrutiny. Reuters
AJ Bell’s Russ Mould called it “unusual for a Bank of England official to explicitly warn” about a potential market pullback—remarks that could have unsettled the City. Simon French, chief economist at Panmure Liberum, flagged the timing as “might be seen as suboptimal” given the government’s recent push to encourage UK savers into the markets. The Guardian
Losses hit major sectors. Wizz Air skidded 3.3% as rising oil prices soured the mood for airlines. Barclays slipped 0.9%, HSBC dropped 1.3%. AstraZeneca tumbled 3.7%, GSK lost 2.7%, pulling the pharma group down 3%.
Local numbers didn’t offer much of a lift. The Office for National Statistics reported a 0.7% bump in retail sales volumes for March, following a revised 0.6% drop in February. Most of that growth, though, came from drivers filling up as fuel prices climbed. Strip out automotive fuel and sales edged up just 0.2%.
Sterling picked up 0.1% to reach $1.348 against the dollar, though it’s still on track to finish the week lower. Traders have shifted gears, now pricing in at least one 25-basis-point Bank of England rate hike this year—quite a turnaround from the pre-war bets on cuts. Markets currently assign an 83% probability the BoE sticks with its 3.75% rate next Thursday.
Mondi tumbled 11.1%, ending up as the FTSE 100’s steepest loser after flagging that costs tied to the Iran war—energy, raw materials, logistics—are set to remain “higher for longer.” “We’re seeing the worst of it right now,” Chief Executive Andrew King told analysts, though he pointed to price increases as a way to shore up margins. Rival Suzano echoed the warning: if the war drags on, expect even steeper prices. Reuters
Demand showed up in spots. Computacenter jumped 14.5% on an upbeat outlook, with the company saying full-year numbers should top expectations. The lift comes from strength in data-centre and artificial-intelligence deals. Jefferies called Computacenter a “clear market share gainer,” highlighting its strong ties to hyperscale customers—big cloud and data-centre players at the heart of the AI ramp-up. London South East
UK shares slid alongside a softer European session, with the STOXX 600 down 0.6%, sinking to its lowest point in over two weeks. The index dropped 2.5% across the week, breaking its streak after four consecutive weeks of gains. Mark Haefele, chief investment officer at UBS Global Wealth Management, pointed to healthcare and industries buoyed by long-term trends as still offering attractive prospects, especially those less exposed to energy swings.
Still, what happens next hinges on diplomacy and oil. If U.S.-Iran negotiations get moving again, that might cool off crude prices and dial down some inflation worries. But if talks stall, companies facing expensive fuel, freight, and raw materials will stay in the crosshairs. For London stocks, the message at week’s end was straightforward: investors want cheaper oil or a more obvious route to peace — neither’s on the table so far.
