Markets brief
Retail Surge and Falling Oil Lift London Markets
Unexpected retail strength and lower crude prices help sterling and the FTSE 100 snap their losing streaks ahead of the Bank of England's rate decision.
Signalpoint TeamBrief
Markets
An unexpected jump in retail sales shows UK consumer demand remains highly resilient — potentially forcing the Bank of England to delay interest-rate cuts to prevent fresh inflation.
BackgroundUK markets have faced persistent headwinds from high interest rates and energy-driven inflation. Investors have been cautious ahead of the Bank of England's upcoming rate decision, keeping gilt yields elevated and sterling under pressure.
Points
- London's blue-chip FTSE 100 closed up 0.91% at 10,736, while the mid-cap FTSE 250 rose 0.73% to end a volatile trading week, recovering ground lost to recent global market sell-offs.
- Brent crude fell nearly 4% to settle at $96.78, easing worries over fuel-driven inflation and cooling the spike in UK gilt yields that had pushed up government borrowing costs.
- HSBC shares rose 1.7% following the $2.1 billion sale of its Singapore division, while investment group 3i Group gained 3.1% after a broker upgrade, driving London's dominant financial sector higher.
SourcesShare Talk: FTSE 100 Rises as Oil Falls Back Below US$100 (opens in new tab)Tickmill: FTSE Finish Line: July 24 — HSBC and Financials Lift London as FTSE Heads for Weekly Gain (opens in new tab)Euronext Markets: Sterling set to end three-week winning run as BoE decision nears (opens in new tab)
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