Banking Stocks Under Pressure Amid New Tax Proposals
London's FTSE 100 fell due to proposed new taxes on banks, with major banking stocks like NatWest and Lloyds seeing declines. Precious metal stocks offered some relief as gold prices rose. Midcap indices experienced losses, driven by declines in luxury fashion and the financial services sector.
London equities experienced a downturn on Friday, predominantly affected by significant banking stocks. This follows a recommendation from a think-tank urging finance minister Rachel Reeves to consider a new tax on the banking sector to increase revenue.
The FTSE 100 index noted a 0.3% dip, marking its most substantial weekly decline in almost five months, influenced by concerns that a banking tax could alleviate the UK's fiscal challenges, according to Russ Mould from AJ Bell. Major banking stocks, including NatWest and Lloyds, saw notable declines.
While banking stocks retreated, precious metal mining stocks such as Hochschild Mining and Fresnillo provided some support, driven by rising gold prices. Meanwhile, the midcap index faced its first monthly loss in five months, with luxury fashion and personal goods sectors also under pressure.
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