The FTSE 100 experienced a decline on Friday, retracting from its record-high levels. This downturn was primarily influenced by underwhelming UK GDP figures and escalating global trade tensions. In an unexpected development, the UK economy contracted by 0.1% in May, stirring apprehensions of a more extensive economic slowdown. Nevertheless, the overall losses were mitigated by robust performances within the gold mining and energy sectors. Notably, Fresnillo and Endeavour saw gains of 3% and 1.1%, respectively, as the demand for safe-haven investments led to an increase in gold prices. BP's shares surged over 3% following projections of heightened upstream production for the second quarter. Additionally, BAE Systems experienced a rise of more than 1%, driven by renewed investor interest in defense stocks.
Trade tensions were further exacerbated when President Trump announced an increase in tariffs on Canadian goods to 35% from the previous 25%, effective August 1. Furthermore, he suggested the possibility of a broad 15-20% tariff on imports from most trading partners. On a separate note, Unilever's stock fell by 1% following its decision to exit the ice cream business in Venezuela. Despite the pullback observed on Friday, the FTSE 100 closed the week with a gain exceeding 1%, registering its most impressive weekly performance since mid-May.
