Trade Tensions Overshadow UK Market Gains Amid Strong Currency

British equities slipped on Friday as renewed trade tensions spurred by U.S. President Donald Trump's recommendation of a 50% tariff on European Union goods overshadowed positive economic data from the UK.

The British benchmark, FTSE 100, fell 0.2% despite marking its second weekly gain, weighed down by sterling trading at a three-year high, affecting export-heavy indices.

While the blue-chip index experienced a gentler decline compared to its European peers, post-Brexit developments and a limited trade agreement with the U.S. helped cushion the blow. As British stocks faced pressure from rising U.S. debt concerns and a UK budget deficit, sectors like retail and gaming reflected mixed outcomes.

(With inputs from agencies.)