Broad-based advances across London equities outweighed energy-sector weakness as stronger retail sales and an upbeat PMI survey reinforced expectations of improving business activity.
The FTSE 100 rose 0.9% on Friday, with gains across most sectors overcoming declines in oil majors as stronger-than-expected UK economic data lifted sentiment. RELX led the index higher with a gain of around 5%, while Rolls-Royce added more than 3%. London Stock Exchange Group and British American Tobacco also rose over 2%, and Reckitt Benckiser moved higher after agreeing to sell its Russian hygiene business to Arnest Management in a transaction expected to result in a post-tax loss of about £175 million. Shell and BP each fell more than 1% as oil prices retreated on reports that Pakistan, backed by China, was seeking to revive US-Iran peace talks, easing concerns about supply disruptions. UK retail sales unexpectedly increased 1% in June, beating forecasts for a 0.3% decline, while the latest S&P Global PMI survey showed business activity returned to expansion and exceeded market expectations. The index finished the week up around 1.3%.