FX.co ★ FTSE 100 Dips as Investors Weigh Fresh Tightening Signals

London’s FTSE 100 slipped 0.3% to 10,785 on Friday, pulling back after two straight sessions of gains as investors digested signals from major central banks and weaker oil prices. The Bank of England left interest rates unchanged on Thursday but cautioned that an extended conflict in the Middle East could necessitate tighter policy. Earlier in the week, both the Federal Reserve and the Bank of Japan raised rates and indicated that further increases remain possible this year. At the same time, oil prices fell for a third consecutive session as Saudi Arabia moved to restore flows through its East–West pipeline, and ahead of a planned meeting next week between US President Donald Trump and Gulf leaders. On the domestic front, UK retail sales rose 0.5% in August, beating expectations for a 0.2% decline and rebounding from July’s drop, with department stores performing particularly well as retailers resolved earlier stock availability problems.