The FTSE 100 experienced a positive trading session, recovering from previous losses due to encouraging UK economic data. Retail sales surged, surpassing forecasts and suggesting increased consumer spending. A record budget surplus, driven by higher tax revenue and reduced debt interest, further boosted market sentiment and cyclical stocks.
- FTSE 100 traded 0.3% higher.
- The index recovered from a 0.6% fall in the previous session.
- Retail sales recorded their fastest growth in 20 months.
- Britain posted a record budget surplus.
- Banks outperformed as traders trimmed Bank of England rate cut expectations.
- The FTSE 100 is up almost 2% for the week.
The provided insights indicate a strengthening economic outlook for the UK, positively impacting the FTSE 100. Stronger consumer demand and improved public finances suggest a more favorable environment for businesses, boosting investor confidence and driving market gains. The outperformance of banks signals a potential shift in monetary policy expectations, further contributing to the index’s upward momentum. The overall weekly gain reflects the resilience of the FTSE 100 amid fluctuating market conditions.