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FTSE 100 clocks weekly decline; personal goods shares biggest drag



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FTSE 100 down 0.7%, FTSE 250 down 1.3%

FTSE 100, FTSE 250 touch lowest level in near one-month

UK house prices post biggest annual gain since late 2022

US job growth rises moderately; unemployment rate falls to 4.2%

Updated at 1550 GMT

By Khushi Singh

Sept 6 (Reuters) -UK's main stock index ended lower on Friday, dragged down by personal goods and automobile shares, while investors assessed U.S. jobs report data to determine the extent of expected interest rate cuts by the Federal Reserve.

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

However, it has fared better than its benchmark European and U.S. peers on a weekly basis, with the STOXX 600 .STOXX and the S&P 500 .SPX down 3.6% and over 4%, respectively.

The domestically focused mid-cap FTSE 250 .FTMC dropped 1.3%, while on a weekly basis the index clocked its biggest fall in six weeks, shedding 2.8%.

The personal goods .FTNMX402040 index tumbled 3.7% as the top sectoral decliner, trading at its lowest levels since December 2009, following a 5.2% sell-off in luxury retailer Burberry BRBY.L.

The index is also the biggest loser on a weekly basis, off 8.2%.

The automobiles and parts .FTNMX401010 index followed with a 3.1% slip, registering its biggest one-day losses in over a month, while industrial metal miners .FTNMX551020 fell 2.7% on lower copper prices as a stronger dollar and mixed U.S. jobs data added to concerns about global economic growth. MET/L

U.S. employment increased less than expected in August, but a drop in the jobless rate to 4.2% suggested an orderly labour market slowdown continued and probably did not warrant a big interest rate cut from the Federal Reserve this month.

CME Group's FedWatch Tool showed 73% of traders now anticipate the U.S. central bank will deliver a 25 basis point in its September meeting.

The European Central Bank is also poised to cut rates while the Bank of England is likely to hold this month.

Meanwhile, data showed British house prices rose last month at the fastest annual pace since late 2022, while a report showed the nation needs an additional one trillion pounds in investment in the next decade to grow the economy.



Reporting by Khushi Singh, Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta, William Maclean

 
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