London Stocks Dip as Borrowing Forecasts Cloud Economic Outlook

London stocks concluded a turbulent week with losses on Friday, reacting to new reports indicating Britain's borrowing levels have outstripped official projections, thereby denting consumer confidence amid fiscal uncertainties.

The FTSE 100 dipped by 0.12%, narrowly falling on a weekly basis as inflation worries loomed large. Meanwhile, the FTSE 250 saw a 0.63% drop, also marking a weekly decline. Britain's mounting debt poses a significant challenge to finance minister Rachel Reeves ahead of her budget announcement in November.

A recent survey indicated declining optimism among Britons this month, exacerbated by potential tax increases. The sterling weakened, marking it as the poorest performer in the G10 currencies, amidst concerns that Reeves might struggle to manage the budget effectively.

August UK retail sales showed slight improvement, though broader economic concerns kept market participants cautious. The Bank of England's rate pause, following August's quarter-point cut, reflects its navigation through persistent inflation and uncertain economic prospects.

Leading brokerages like Goldman Sachs and JPMorgan project no further interest rate cuts by the BoE this year. Earlier, central banks in the U.S., Canada, and Norway reduced interest rates, raising expectations of further easing. The Fed's 25 basis-point cut previously lifted risk assets.

Media stocks were the hardest hit sector, tumbling 2.2%, with WPP Plc plummeting 5.2%. However, precious metal miners made gains, buoyed by rising gold prices.

Fresnillo, Hochschild, and Endeavour Mining rose between 4.5% and 5.2%. Additionally, IG Group reported its acquisition of Australian cryptocurrency exchange Independent Reserve for A$178 million, yet saw its shares dip 2.9% post-announcement.

Spire Healthcare surged by 14.1%, following the private hospital group's announcement of exploring strategic options, including a possible sale.

(With inputs from agencies.)