Finance
London blue-chips slip as sterling jumps after retail sales beat
Published by Jessica Weisman-Pitts
Posted on September 20, 2024
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on September 20, 2024
2 min readLast updated: January 29, 2026
(Reuters) – UK shares slipped on Friday while the British pound jumped, though the stock index was set to eke out weekly gains riding on a rise in
(Reuters) – UK shares slipped on Friday while the British pound jumped, though the stock index was set to eke out weekly gains riding on a rise in global risk sentiment following the U.S. Federal Reserve’s bumper rate cut.
At 0715 GMT, the FTSE 100 fell 0.5%, as a 0.4% rise in the British pound pressured export-oriented companies. The more domestically-focussed midcap index lost 0.7%.
British retail sales rose by a stronger-than-expected 1% in August, beating forecasts for a monthly rise of 0.4% and growth in July was revised up, data showed.
The data lifted the pound, which has risen to its highest level against the dollar since 2022 this week after the Federal Reserve cut rates by 50 basis points, while the Bank of England kept rates on hold at its meeting on Thursday.
Friday declines were broad based, with all sector indexes flat or lower, led by a 4.5% drop in the personal goods index.
The FTSE 100 was set to rise marginally, about 0.2% for the week, while the midcap index was on track for weekly gains of 0.6%, with both on track for the second consecutive week of gains.
Markets rallied on Thursday after the Fed’s 50 bps reduction, with the FTSE 100 touching a two week high.
However, UK stocks continue to lag both U.S. and euro zone equities this year, with both the Fed and European Central Bank expected to ease rates faster than the BoE.
Among single movers, Burberry lost 4.6% after brokerage Jefferies cut its rating on the stock to underperform from neutral, citing continued difficulties for the luxury goods sector.
Further dragging the personal goods index, Dr Martens slumped 14% after a block trade was priced at 57.85 pence per share, lower than its last close of 64.10 pence.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Nivedita Bhattacharjee)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, measured by market capitalization.
Retail sales refer to the total receipts of retail stores, indicating consumer spending on goods and services over a specified period.
The British pound, often symbolized as GBP, is the official currency of the United Kingdom and its territories, known for its stability and wide acceptance.
A rate cut is a reduction in the interest rate set by a central bank, aimed at stimulating economic activity by making borrowing cheaper.
An export-oriented company primarily focuses on selling its products or services to foreign markets rather than domestic markets.
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