ondon’s FTSE 100 has clutched onto gains after a bumper week, with investors buoyed by slower inflation and better-than-expected retail data.
The blue-chip index ended the day more than 200 points higher than the previous week’s close, despite a slower session on Friday.
It closed 17.68 points higher, or 0.23%, at 7,663.73.
It followed a rally earlier in the week spurred by a bigger fall in UK inflation than economists had been expecting.
And on Friday, the Office for National Statistics (ONS) said retail sales in June rose by 0.7%, beating expectations of a 0.2% increase.
With the US economy experiencing moderating inflation without material economic pain, central bankers around the world will be wanting to repeat the trick
Nevertheless, consumer confidence suffered a sudden collapse in July as persistent inflation and rising rates took hold, according to a separate survey from GfK.
It suggests that the relative resilience of the UK economy could be beginning to crack, experts said.
Guy Foster, chief strategist at RBC Brewin Dolphin, said: “Retail sales activity held up better than expected again during June. The news further complicates the Bank of England’s decision-making.
“Inflation has moderated a little and the pain of interest rate increases already deployed has not yet been felt, but evidence continues to suggest that consumers are taking it in their stride.
“With the US economy experiencing moderating inflation without material economic pain, central bankers around the world will be wanting to repeat the trick.”
It was a mixed session for other European markets.
Germany’s Dax lost 0.17% on Friday, while France’s Cac 40 was up 0.65% at close.
US markets got trading off on the front foot.
The S&P 500 was up 0.37% and Dow Jones up 0.28% when European markets closed.
The pound was down 0.1% against the US dollar to 1.285, and was flat against the euro to 1.156.
The price of Brent crude oil jumped 1.2% to 80.6 US dollars per barrel.
In company news, shares in THG tumbled after the group said it has sold two lossmaking businesses for £4 million in efforts to boost its balance sheet.
The business said it was offloading the divisions to “simplify and streamline” its operations, and boost returns for shareholders.
But the move failed to spark enthusiasm among shareholders and its share price dropped by 9.3% at close.
Meanwhile, bus and train operator FirstGroup saw its shares move higher after telling shareholders its financial performance was in line with expectations.
The company, which is among the rail firms to be caught up in long-running industrial action, said it was nearing the completion of its first £75 million share-buyback programme.
Its share price moved 3.1% higher.
The biggest risers on the FTSE 100 were Hargreaves Lansdown, up 17p to 927p, Haleon, up 4.95p to 337.85p, Ashtead Group, up 74p to 5,574p, Rentokil Initial, up 8.4p to 639p, and Relx, up 29p to 2,608p.
The biggest fallers on the FTSE 100 were WPP, down 36.4p to 828p, Prudential, down 32p to 1,043.5p, Mondi, down 29p to 1,301.5p, NatWest Group, down 5.5p to 251.4p, and BT Group, down 2.65p to 123.15p.