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Heathrow power outage hits UK airlines
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J D Wetherspoon tumbles on weak interim profit
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FTSE 100 down 0.6%, FTSE 250 down 0.9%
March 21 (Reuters) - British stocks closed lower on Friday on continued worries about the economic impact of U.S. tariff policy, while a shutdown of Heathrow Airport pressured travel stocks.
The blue-chip FTSE 100 was down 0.6%. The mid-cap FTSE 250 index declined 0.9%.
Despite the day's losses, the blue-chip index rose 0.3% this week. The mid-cap index snapped four weeks of losses, rising 0.5%.
Meanwhile, Britain's Heathrow said it had begun the process of reopening, after a fire knocked out its power supply and shut Europe's busiest airport for the day.
The shutdown weighed on airline and travel stocks globally, though stocks pared some losses after the reopening announcement.
British Airways owner IAG fell as much as 4.2% and closed 1.9% lower.
The travel and leisure sector fell nearly 2%.
This week's sentiments were primarily influenced by central bank decisions, with policymakers globally flagging concerns driven by U.S. tariff policy.
While the Federal Reserve projected several interest rate cuts this year, Chair Jerome Powell cautioned that Donald Trump's policies tilted the U.S. economy toward slower growth and at least temporarily higher inflation.
The Bank of England held interest rates at 4.5%, but similarly warned against expectations of future cuts due to an uncertain economic outlook.
Trump said that there would be flexibility on tariffs, ahead of the reciprocal duties he is likely to impose in April.
J D Wetherspoon tumbled 9.4%, after the pub group's weak interim profit and poor economic outlook.
JD Sports Fashion dropped 5.1%, following Nike's bleak fourth-quarter revenue outlook.
Iron ore pellet producer Ferrexpo fell 10.8% on Ukraine's VAT refund suspension.
John Wood Group fell 13.1% after Jefferies downgraded the stock to "hold" from "buy".
On the radar for next week is UK inflation data and the government's half-yearly budget update. (Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Savio D'Souza, William Maclean)
