FX.co ★ UK Stocks Fall for 4th Day

The FTSE 100 declined towards the 9,200 mark on Friday, marking its fourth consecutive session of losses, predominantly driven by a downturn in bank stocks. Notably, shares of NatWest, Lloyds, and Barclays experienced significant declines following a proposal by a prominent think tank suggesting the implementation of a windfall tax on banks. This proposal harkens back to a policy from the Thatcher era. Ahead of the autumn budget, the Institute for Public Policy Research (IPPR) has recommended taxing commercial banks to seize a share of the profits accrued from quantitative easing, citing the "unintended consequences" of this policy. Meanwhile, global market sentiment remained wary as investors awaited the latest US PCE inflation figures, which could provide insights into the Federal Reserve's upcoming policy decisions. Consequently, the index was poised to end the week 1.3% lower, though it remained 0.7% higher for August overall.