UK stock markets experienced a rise following unexpectedly low retail sales figures, fueling anticipation that the Bank of England might begin reducing interest rates.
The FTSE 100 saw a 0.6% increase, continuing its upward trend for a second consecutive day after the release of higher-than-anticipated inflation data on Wednesday. However, it is still projected to end the week with a loss.
December witnessed the most significant decline in sales for British retailers in nearly three years, heightening concerns that the economy may have slipped into a recession during the fourth quarter.
Following the release of this data, the pound decreased by 0.3%, which in turn benefited companies with earnings in dollars, such as Shell and AstraZeneca, both of which generate a substantial portion of their income from international markets.
The FTSE 250 index, which is more focused on domestic markets, increased by 0.3% but is also on track for a weekly decline.
In terms of individual stocks, homebuilder Persimmon saw an increase of up to 3.5% after Morgan Stanley upgraded its rating from “underweight” to “overweight”.
Deliveroo’s shares rose by 1.6% following the meal delivery company’s announcement that its 2023 earnings are expected to be slightly higher than the previously forecasted range of £60 million to £80 million.
Wincanton experienced a significant surge of 47.1% after the announcement that CEVA Logistics, a subsidiary of the French shipping conglomerate CMA CGM, intends to acquire the British logistics company in an all-cash transaction valued at nearly £600 million.
