FTSE 100: Index Declines Further; Land Securities Falls Despite Raised Guidance

The FTSE 100 fell 1.1% in early Friday trading, deepening the more than 1% decline recorded in the previous session, as political and global market concerns weighed on sentiment. Despite the pullback, the blue-chip index remains on course to eke out a modest 0.2% gain for the week.

Market nerves were unsettled after reports of a government income tax U-turn, compounding jitters triggered by the sharpest decline in U.S. markets in over a month.

The generally cautious tone has extended across Europe, with Germany’s DAX down 0.7% and France’s CAC 40 slipping 0.4%.

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Land Securities was the FTSE 100’s heaviest faller, dropping more than 4%, even as the property group upgraded its outlook. The company now expects like-for-like net rental income growth of between 4% and 5% for the year to March, compared with previous guidance of 3% to 4%.

Banking stocks also came under pressure, with Lloyds, Barclays and NatWest down between 3% and 4% amid renewed budget uncertainty and concerns about the broader economic outlook.

A handful of stocks bucked the downward trend. DCC climbed 1.5%, making it the strongest performer on the index. Melrose Industries gained 0.9%, while BP rose 0.5%, providing some support to an otherwise weak session.

The latest decline leaves investors focused on whether the FTSE 100 can stabilise in the coming days, as policy uncertainty and global market volatility continue to shape trading conditions.