FTSE 100 rebounds despite weak UK retail data
London’s top index moved 1.26%, or 93.28 points, higher to finish at 7,504.25.
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Your support makes all the difference.The FTSE 100 closed at its highest level for four weeks as it was boosted by stronger housing and finance stocks, as well as a recovery in oil prices.
London firms performed well as traders continued to welcome easing interest rate expectations.
It came after disappointing UK retail sales, with a 0.3% decline in October and a larger than previously recorded fall in September.
Equities rose despite concerns the data pointed towards economic decline, amid hopes reduced spending could mean interest rate cuts in the nearer future.
Despite much weaker than expected UK retail sales the FTSE 100 gained over 1% amid an oil price recovery from four-month lows
London’s top index moved 1.26%, or 93.28 points, higher to finish at 7,504.25.
Axel Rudolph, senior market analyst at IG, said: “Despite much weaker than expected UK retail sales the FTSE 100 gained over 1% amid an oil price recovery from four-month lows.
“Unexpectedly strong US housing starts and building permits, a forward-looking indicator of future construction, didn’t quite manage to keep US stocks in the green on the last day of their three-week gain.”
Elsewhere in Europe, the other main markets also made significant rises as they bounced back from Thursday’s sell-off.
The Dax index was 0.85% higher for the day at the close and the Cac 40 closed up 0.93%.
Stateside, the US markets were more subdued as weak results from Walmart raised concerns over a cooling economy.
Meanwhile, sterling initially dropped against the dollar following the weak retail data but stabilised after the US markets opened.
The pound was up O.1% at 1.242 US dollars and was 0.09% lower at 1.142 euros at market close in London.
In company news, guarantor lending firm Amigo saw its already small share value shrink further after it ended talks which it hoped might have provided some payout to shareholders.
The business said that the exclusivity agreement it signed a month ago with investor Craven House Capital and others had been terminated.
Shares, which had been suspended while talks took place, restarted trading and dropped 0.075p to 0.325p on Friday.
NatWest had a positive session after the taxpayer-backed bank was upgraded by analysts at Barclays.
Barclays’ experts said NatWest was now its pick among UK banks, replacing Lloyds, over “slowing deposit migration”.
Shares in NatWest finished the day up 6.9p at 207.8p.
Asset management firm Record dropped in value after it revealed lower profits and announced the departure of its boss.
Shares dipped by 2.8p to 67.6p as it told shareholders chief executive officer Leslie Hill will retire next year.
The price of oil clawed back some ground but still reported its fourth consecutive week of decline since tensions in the Middle East first caused a spike in pricing.
A barrel of Brent crude rose by 3.36% to 80.02 US dollars (£64.39) as markets were closing in London.
The biggest risers on the FTSE 100 were Standard Chartered, up 29.8p to 660p, DCC, up 180p to 5,348p, NatWest Group, up 6.9p to 207.8p, Barratt Developments, up 14.8p to 484p, and Prudential, up 27.4p to 945p.
The biggest fallers on the FTSE 100 were BAE Systems, down 6.5p to 1,055.5p, Unilever, down 19.5p to 3,816p, Haleon, down 1.25p to 326.85p, Rolls-Royce, down 0.5p to 244p, and Melrose Industries, down 0.6p to 522p.