The FTSE 100 ended the session firmly in the red on Friday, closing down 1.1% at 9,698.37 points, as mounting uncertainty over the public finances rattled UK markets.
London stocks wavered throughout the day after the Chancellor backtracked on plans to raise income tax, adding fresh doubts over the Government’s fiscal strategy and weighing heavily on investor sentiment.
Landsec was among the worst performers, sliding 5.2% after reporting a decline in the value of its assets per share. Kingfisher, the owner of B&Q, also struggled, falling 4% amid the broader sell-off.
Government borrowing costs surged, with 10-year gilt yields jumping 13.6 basis points to 4.57%, reflecting investor nerves over the fiscal outlook.
Sterling weakened as well, dropping 0.5% to $1.31 and €1.13, adding further pressure to UK markets at the end of a turbulent trading week.
