FTSE 100 Retreats as Mining and Banking Weights Offset Strong Macro Data

The FTSE 100 closed lower on Friday, slipping 59.89 points or 0.59% to finish at 10,318.93. The decline was primarily fueled by a sell-off in mining and banking stocks, compounded by lingering geopolitical tensions in the Middle East which weighed on overall investor sentiment. While the index struggled, the broader UK economic landscape showed surprising resilience. Stronger-than-expected housing and manufacturing data suggest underlying strength in the domestic economy, even as global headwinds pressure equity valuations. In the mining sector, Endeavour Mining and Fresnillo led the losses, dropping 5.5% and 3.3% respectively. The banking sector also faced pressure; Natwest Group shares fell 4.2% despite reporting a bottom line of GBP 1.507 billion and a slight revenue increase to GBP 4.358 billion. Other lenders, including Lloyds Banking Group and Standard Chartered, also traded lower. On the economic front, Nationwide Building Society reported a 3% annual increase in house prices for April, significantly beating the 2.2% forecast. Additionally, the S&P Global UK Manufacturing PMI surged to 53.7, marking its highest level since May 2022. Mortgage approvals also exceeded expectations, reaching 63,531 in March, the highest level since November 2025. The divergence between positive macroeconomic indicators and negative equity performance highlights a market currently more sensitive to geopolitical risk and sector-specific volatility than domestic growth metrics.