• FTSE 100 down 0.4%, FTSE 250 falls 0.6%
• UK retail sales contract in October, business growth stalls in November

Nov 21 (Reuters) - London's main stock indexes plunged on Friday, headed for weekly losses, as concerns over tech valuations and Federal Reserve's hawkish stance rattled global markets, while defence shares slid amid signs of potential progress toward peace in Ukraine.

As of 1222 GMT, the blue-chip FTSE 100 index (.FTSE) , opens new tab fell 0.4%, erasing Thursday's brief recovery, while the mid-cap FTSE 250 index (.FTMC) , opens new tab dropped 0.6%, on pace to extend its losing streak to an eighth consecutive session.

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Thursday's global rally following chip bellwether Nvidia's (NVDA.O) , opens new tab upbeat forecast proved short-lived as worries of a potential AI bubble resurfaced and a mixed U.S. jobs report left Fed rate-cut prospects unclear.

Both UK stock indexes poised to register even steeper weekly losses than those seen in April, when markets were roiled by U.S. President Donald Trump's sweeping tariff announcements.

Aerospace and defence stocks (.FTNMX502010) , opens new tab fell 3.2% on the day to their lowest in three months, as investors monitored developments around a new U.S.-drafted plan to end the Russian war in Ukraine.

Defence and engineering contractor Babcock (BAB.L) , opens new tab dropped 0.7% even after it reported a 19% jump in first-half profit and forecast further growth this year.

Banking stocks (.FTNMX301010) , opens new tab drifted lower by 0.7%, with heavyweights HSBC Holdings (HSBA.L) , opens new tab and Barclays (BARC.L) , opens new tab dropping about 1%.

Precious metal miners (.FTNMX551030) , opens new tab lost 3.6% as gold prices retreated more than 1%, while industrial metal miners (.FTNMX551020) , opens new tab declined 1.7% after copper prices sank to their lowest level in over two weeks.

Domestic economic data also added to the gloom. Retail sales contracted in October alongside weakening household sentiment, while business growth stalled as November's PMI dropped.

Companies are now awaiting next week's budget announcement, where finance minister Rachel Reeves is expected to implement additional tax increases.

Among individual movers, fast-fashion retailer ASOS (ASOS.L) , opens new tab plunged 8.7% after the company forecast lower annual profit than analysts' expectations.

https://www.reuters.com/business/finance/uk-stocks-set-sharp-weekly-losses-tech-fed-concerns-hit-markets-2025-11-21/