The FTSE 100 fell back after hitting a new all-time high to close lower on Friday amid caution ahead of the US-Russia peace summit, hints of more tariffs and weak US consumer sentiment.
The index closed down 38.34 points, 0.4%, at 9,138.90. It had earlier reached an all-time intra-day high of 9,222.07.
The FTSE 250 ended down 43.43 points, 0.2%, at 21,758.24, and the AIM All-Share finished 0.86 of a point higher, 0.1%, at 759.80.
For the week, the FTSE 100 rose 0.5%, the FTSE 250 fell 0.9% and the AIM-All Share declined 0.3%.
In Europe, the Cac 40 in Paris rose 0.7%, while the Dax 40 in Frankfurt closed down slightly.
US President Donald Trump and Russian counterpart Vladimir Putin will meet later on Friday in Alaska in a summit that could prove decisive for the future of Ukraine.
Mr Putin will step on to western soil for the first time since he ordered the invasion of Ukraine in February 2022.
Mr Trump extended the invitation at the Russian leader’s suggestion, but the US president has since warned that the meeting could be over within minutes if Mr Putin does not compromise.
Speaking to reporters aboard Air Force One en route to Anchorage, the US leader sounded a more positive note, saying: “There’s a good respect level on both sides and I think something’s going to come out of it.”
“Investors will be watching closely for signs a credible peace deal is in the offing and any outcomes could set the mood music for next week,” said AJ Bell investment director Russ Mould.
Mr Trump also said he will be setting new tariffs on steel, semiconductors and computer chips from next week, but declined to say what rate would apply, according to AFP.
The US president said he would keep the new levies “lower at the beginning” to give companies “a chance to come in and build” in the US.
“And if they don’t build here, they have to pay a very high tariff, which doesn’t work. So they’ll come and build,” he said.
In New York, the Dow Jones Industrial Average was up 0.1%, the S&P 500 was 0.2% lower, and the Nasdaq Composite dropped 0.4%.
Figures showed US retail sales growth decelerated in July, although the number was in line with hopes.
The US Census Bureau said retail sales grew 0.5% monthly in July from June, when they had grown 0.9%, which revised up from 0.6%.
But separate data from the University of Michigan showed the preliminary August sentiment index fell to 58.6 from 61.7 a month earlier. FX Street consensus had forecast an improvement to 62.0.
The report showed US consumers are scaling back spending plans amid concerns about inflation and weakening job prospects.
The pound climbed to 1.3566 dollars late on Friday afternoon in London, compared with 1.3541 at the equities close on Thursday.
The yield on the US 10-year Treasury was at 4.31%, widened from 4.28%. The yield on the US 30-year Treasury was 4.90%, up from 4.87%.
On the FTSE 100, mining stocks rose despite weak data from China.
Anglo American rose 2.1%, Glencore climbed 1.8% and Antofagasta 1.2% on hopes the soft figures will spark action from Chinese authorities.
“Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year,” ING said.
“After a strong start, several months of cooling momentum suggest that the economy may need further policy support,” the broker added.
Asia-focused bank Standard Chartered slumped 7.2% after a US politician asked the country’s attorney general to investigate the bank.
Republican Elise Stefanik, in a post on X, said she has asked Pam Bondi to investigate the bank for “illicit payments to known terrorists”.
Ms Stefanik shared a letter on X in which she alleged Standard Chartered had made 9.6 billion dollars from such payments.
“China has been using Standard Chartered to purchase sanctioned Iranian oil,” she claimed.
On a quiet day for company news, Associated British Foods ended up 0.2% after confirming the acquisition of Hovis Group from private equity firm Endless.
AB Foods plans to combine Hovis with its existing Allied Bakeries division to create a “profitable UK bread business that is sustainable over the long term”.
Allied Bakeries owns the bread brands Kingsmill, Allinson’s and Sunblest. It also produces own-label bakery ranges for major UK supermarkets.
Clive Black, retail analyst at Shore Capital, said the deal shows AB Foods has been true to its word and taken “demonstrable action to deal with persistent problem children”.
He said AB Foods and Endless need to overcome any UK antitrust concerns, but he believes there is “ample” choice for bread shoppers after any Hovis/Kingsmill alliance, providing a “firm basis” for regulatory approval.
On the FTSE 250, Bytes Technology Group jumped 8.4% after launching a share buyback programme worth up to £25 million.
A barrel of Brent fell to 66.33 dollars late on Friday afternoon from 66.80 on Thursday. Gold rose to 3,343.39 dollars an ounce against 3,339.74.
The biggest risers on the FTSE 100 were Anglo American, up 47.0p at 2,170.0p, BP, up 7.3p at 421.4p, Glencore, up 5.2p at 299.7p, Games Workshop, up 200.0p at 15,680.0p and Antofagasta, up 26.0p at 2,122.0p.
The biggest fallers were Standard Chartered, down 101.5p at 1,305.5p, Rolls-Royce, down 27.5p at 1,074.0p , 3i Group, down 96.0p at 3,971.0p, Airtel Africa, down 4.0p at 216.2p and Rightmove, down 13.8p at 761.0p.
Contributed by Alliance News
