# London stocks recover; set for weekly drop as slowdown, inflation fears linger
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-13
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: FTSE 100 recovers losses, led by defensive stocks
Meta Description: FTSE 100 recovers losses led by banks, consumer staples, and healthcare stocks, despite economic concerns. Expert views on healthcare sector resilience.
URL: https://financedigest.com/london-stocks-recover-set-for-weekly-drop-as-slowdown-inflation-fears-lingerhtml

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By Bansari Mayur Kamdar

(Reuters) -UK’s FTSE 100 recouped losses on Friday towards the end of a volatile week, led by defensive stocks, but investor concerns over stubborn inflation and economic slowdown set the benchmark index towards its second consecutive weekly loss.

The blue-chip FTSE 100 rose 1.4% in early trade, tracking an overnight relief rally on Wall Street as it recovered part of its initial sell-off on Thursday.

[Banks and defensive sectors including consumer staples and healthcare stocks](https://www.financedigest.com/asian-stocks-rally-as-bank-jitters-calm-alibaba-lifts-mood.html "Asian stocks rally as bank jitters calm, Alibaba lifts mood") that tend to be less sensitive to the economic climate boosted the benchmark index.

[Banks gained](https://www.financedigest.com/asian-shares-gain-as-fears-about-rapid-fed-hikes-bank-crisis-fade.html "Asian shares gain as fears about rapid Fed hikes, bank crisis fade") 2.7%, recouping their previous session’s losses, while pharmaceutical giants like AstraZeneca and GlaxoSmithKline rose nearly 1.5% each.

[“Healthcare is seen as a more defensive sector](https://www.financedigest.com/are-the-us-healthcare-sectors-frailties-treatable.html "Are the US healthcare sector’s frailties treatable?"), certainly with the ongoing pandemic. The demand for healthcare isn’t going to go away, so you’re seeing resilience there,” said Susannah Streeter, senior [investment and markets](https://www.financedigest.com/compelling-tips-to-make-profitable-investments-in-the-stock-market.html "Compelling Tips to Make Profitable Investments in the Stock Market") analyst, Hargreaves Lansdown.

The commodity-heavy FTSE 100 index has fallen nearly 0.7% this week, trailing behind its pan-European peers, as weaker commodity prices [hit oil and mining stocks amid recession fears](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") and demand concerns.

Ongoing tensions between the UK and the European Union (EU) over [post-Brexit trade rules for Northern Ireland also added to investor](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") woes.

There is concern that if there isn’t some kind of deal reached, there could be a fresh trade spat emerging between the EU and the UK that could lead to a further [increase in prices,”](https://www.financedigest.com/taylor-wimpey-espana-remain-cautiously-optimistic-as-average-selling-price-increases-by-20-4.html "Taylor Wimpey España ‘remain cautiously optimistic’ as average selling price increases by 20.4%") said Streeter.

That would be extremely worrying for the UK economy at a time when it’s already grappling with [expectations of 10% inflation.”](https://www.financedigest.com/dollar-drops-as-inflation-cools-more-than-expected.html "Dollar drops as inflation cools more than expected")

The domestically focussed mid-cap index advanced 1.5%.

Sage Group rose 1.7%, after the software company’s first-half [profit met market estimates and said its margin was expected to trend higher](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit") in the second half and beyond.

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)


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