FTSE 100 Falls On Inflation Worries

U.K. stocks were moving lower on Friday, with a surge in U.S. Treasury yields and a stronger pound keeping investors nervous.

The British pound strengthened after a GfK survey showed British consumer sentiment notched a one-year high this month.

Market research firm GfK said its consumer confidence index rose to -16 from -23 in February amid confidence that an economic recovery from the coronavirus pandemic is approaching.

Meanwhile, the U.K. budget deficit reached its highest February level since records began in 1993, the Office for National Statistics said.

Public sector net borrowing, excluding public sector banks, increased by GBP 17.6 billion from the previous year to GBP 19.1 billion in February. This was the highest February borrowing since monthly records began in 1993.

The benchmark FTSE 100 fell 39 points, or 0.6 percent, to 6,740 after gaining 0.3 percent on Thursday.

Oxford Biomedica shares declined 1.6 percent. The gene and cell therapy group announced that French drug maker Sanofi has given notice intending to terminate their Collaboration and License deal for process development and manufacturing of lentiviral vectors to treat haemophilia.

Pubs chain JD Wetherspoon was down 1.5 percent after posting record half-year loss.

Investec shares slumped 7 percent. The investment advice company said that its profit in the year to March 31 was likely to fall by up to 29 percent.

Lender Barclays dropped 1.3 percent after launching a share buyback plan.

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