London's FTSE 100 retreats as banks, energy weigh but eyes weekly rise

London's FTSE 100 slipped on Friday after reaching a one-week peak, with banks and energy stocks dragging it lower, though the index remained on course for a weekly gain. By 0953 GMT the blue-chip index was down 0.6% at 10,751.57 points, while the midcap FTSE 250 was unchanged but on course for its steepest weekly gain since early August.

Financial shares were the heaviest drag, with banks down 0.7%, Lloyds falling 1.2% and HSBC 0.6%. Energy firms shed 0.8% as oil extended a three-session decline after easing worries over Saudi supply. Telecoms posted the steepest percentage fall, with Airtel Africa sliding 8.8% after a report that its Airtel Money unit was weighing a smaller London IPO.

Precious metal miners gained 1.6% as bullion extended its rally, while Softcat, an IT firm, dropped 2.8% after agreeing to acquire US-based GDT in a deal whose enterprise value stands at $1.05 billion. Earlier in the week the Bank of England kept rates unchanged but cautioned it could raise them if the Iran war continued, and Barclays joined J.P. Morgan in forecasting a November hike.