Banks yanked U.K. stocks lower on Friday, shaken by concerns over a delay to tax reforms in the U.S. and news that former U.S. national security adviser will testify about President Donald Trump. The FTSE 100 index fell 0.4% to close at 7,300.49, deepening its weekly loss to 1.5%. The pound traded at $1.3501, down from $1.3529 late Thursday in New York. It fell below the $1.3500 level after the release of U.K. manufacturing data. Against the euro, sterling bought €1.1341, down from €1.1366. U.K. and European equities SXXP, -0.70% extended losses in the afternoon after news former national-security adviser, Michael Flynn, pleaded guilty Friday to lying to the FBI and reached a deal with the special counsel investigating Russia’s alleged interference in the U.S. election. Flynn has promised full cooperation with Special Counsel Robert Mueller and is said to be prepared to testify that Trump during the election campaign directed him to make contacts with the Russians, according to an ABC report.
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