By Khushi Singh

(Reuters) – The UK’s main stock index ended lower on Friday, weighed down by personal goods and automobile shares, as investors evaluated U.S. jobs report data to gauge the potential impact on expected interest rate cuts by the Federal Reserve.

The blue-chip index FTSE 100 fell 0.7%, marking its sixth consecutive decline and a 2.5% loss for the week, its steepest weekly decrease since mid-January.

Despite this, it has outperformed its European and U.S. counterparts on a weekly basis, with the STOXX 600 and S&P 500 down 3.6% and over 4%, respectively.

The domestically focused mid-cap FTSE 250 dropped 1.3%, experiencing its largest weekly fall in six weeks, down 2.8%.

The personal goods sector was the biggest decliner, plummeting 3.7% to its lowest level since December 2009, following a 5.2% sell-off in luxury retailer Burberry.

This index recorded the largest weekly decline as well, off 8.2%.

The automobiles and parts index slipped 3.1%, marking its biggest single-day loss in over a month, while industrial metal miners fell 2.7% in response to lower copper prices. A stronger dollar and mixed U.S. jobs data fueled concerns about global economic growth.

U.S. employment growth was less than expected in August, but a drop in the jobless rate to 4.2% suggested that a gradual slowdown in the labor market is ongoing and likely does not necessitate a significant interest rate cut from the Federal Reserve this month.

CME Group’s FedWatch Tool indicated that 73% of traders now expect the U.S. central bank to implement a 25 basis point cut in its September meeting.

The European Central Bank may also reduce rates, while the Bank of England is anticipated to maintain its current rates this month.

Additionally, data revealed that British house prices increased last month at the fastest annual rate since late 2022, with a report indicating the need for an additional one trillion pounds in investment over the next decade to spur economic growth.