FTSE 100 Falls Amid Low Trading Volume Amid Pressure from NatWest and AstraZeneca

UK Shares Fall in Thin Holiday Trading as AstraZeneca and NatWest Weigh on Index

UK shares declined in thin holiday trading on Friday, with the FTSE 100 index falling 0.6% as of 12:52 p.m. in London. The index was affected by the underperformance of AstraZeneca Plc and NatWest Group Plc, as investors digested a busy week for monetary policy and earnings.

AstraZeneca Plc retreated as much as 2.7% following a US Food and Drug Administration advisory committee's vote against the company's breast cancer medicine. NatWest Group Plc fell the most since mid-March, with its net interest income failing to meet expectations. In contrast, Diageo Plc gained as much as 2.8% after US President Donald Trump announced plans to remove some Scotch tariffs following a visit from King Charles III.

European shares rose 4.8% in April, marking their best monthly performance since January 2025. Despite this, the benchmark is 4% below its pre-war levels. The focus remains on geopolitics, with investors monitoring the impact of disruptions in the Strait of Hormuz on energy prices and inflation.

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The ongoing Middle East tensions are also raising questions about the outlook for interest rates. The European Central Bank is likely to increase borrowing costs if the Iran war persists, according to outgoing Governing Council member Madis Muller. This realization could potentially lead to a retest of the market's lows, as investors anticipate a shift in inflation and interest rate expectations.

Note: The table above shows the monthly change in the European shares index.