LONDON, July 24, 2026, 11:50 BST – Britain’s FTSE 100 index climbed as banking shares advanced ahead of retail stocks after UK retail sales posted an unexpected result.
- The FTSE 100 closed up 0.31%, and the FTSE 250 advanced 0.36%.
- Retail sales increased by an estimated 1.0% in June. Analysts had forecast a 0.3% decline.
- An early basket of banks rose 0.88%, while four major retailers dipped 0.15%.
The FTSE 100 in Britain climbed on Friday following an unexpected increase in retail sales. Banking stocks moved higher, while oil giants and a number of retailers declined.
The main indicator for investors during the session was the divergence. Financial stocks saw gains as investors responded positively to lenders, whereas wider retail equities did not have a shared driver.
The increase in sales was driven by online activity. Online purchases accounted for 29.4% of overall spending, the highest share since April 2021. Non-store sales rose 4.4%.
At 11:50 BST, the FTSE 100 was up 0.31% at 10,671.96, while the FTSE 250 rose 0.36% to 23,712.58. London continued trading during its main session.
The ONS reported that sales volumes increased by 1.0% in June compared to May. A Reuters poll of economists had forecast a 0.3% fall. Sales volumes for the quarter grew by 0.6%.
The market reaction was more limited. An initial equal-weight comparison is provided below.
| Company or basket | Price | Day move |
|---|---|---|
| HSBC Holdings LON:HSBA | 1,545.90p | up 1.23% |
| Lloyds Banking Group LON:LLOY | 113.58p | rising 0.98% |
| NatWest Group LON:NWG | 675.60p | gaining 0.72% |
| Barclays LON:BARC | 522.65p | adding 0.60% |
| Bank basket | — | up 0.88% |
| Tesco LON:TSCO | 477.35p | up 0.44% |
| J Sainsbury LON:SBRY | 344.30p | unchanged |
| Next LON:NXT | 14,635.00p | down 0.24% |
| Marks & Spencer Group LON:MKS | 376.50p | falling 0.79% |
| Retail basket | — | off 0.15% |
Preliminary equal-weight averages displayed; these are not formal FTSE sector indices. Price information is delayed by a minimum of 15 minutes.
The gap between the baskets measured 1.03 percentage points. This indicates that investors interpreted the sales beat more as a rates-related signal than as an indicator of improved retail profits.
JD Sports Fashion LON:JD gained 3.03%, standing out from the rest. The company’s market segment aligned with the uptick seen in clothing and sports goods.
HSBC shares climbed on different news. Allianz ETR:ALV reached a deal to purchase HSBC Life Singapore for €2 billion, pending regulatory approval.
Ruth Gregory at Capital Economics cautioned that the robust spending could weaken. “We don’t expect this resilience to last,” said the deputy chief UK economist. Reuters
The Bank of England is seen keeping the Bank Rate unchanged at 3.75% next week. Markets have factored in roughly two 25 basis point hikes by the end of the year.
BP LON:BP declined by 1.64% and Shell LON:SHEL was down 1.00%. Brent dropped below $100 following a rally on Thursday.
The FTSE 100 dropped 0.7% on Thursday but held a 0.75% gain across five sessions. For 2026, it has risen 7.54%.
Energy and rate risks are still central concerns. Escalating conflict in the Middle East could push up inflation, pressure household budgets, and prompt a quicker tightening of monetary policy. The retail estimate for June is subject to volatility.
The upcoming Bank of England decision has taken on increased significance. The key issue is whether continued strong consumer spending can bolster banks while avoiding harm to households.
