UK's blue-chip FTSE 100 index was on course to end a four-week losing streak after data released this week weakened expectations of a Bank of England rate hike, giving relief to investors unsettled by political uncertainty.
The blue-chip FTSE 100 index rose 0.21% as of 11:18 am GMT on Friday, while the midcap FTSE 250 climbed 0.57%.
* British retail sales fell by the most in nearly a year in April, according to official figures published on Friday, adding to signs of waning consumer spending against the backdrop of the Middle East war and rising energy costs.
* Earlier this week, separate data also showed that inflation in April was softer than expected, while the unemployment rate ticked up.
* "Dovish data should reduce the urgency for the BoE to act. So far the MPC (Monetary Policy Committee) is taking comfort from tightening in financial conditions which they say can give them time to assess whether to hike or not," BofA Securities analysts said.
* The brokerage now expects the central bank to raise borrowing costs in July, later than its previous estimate of a June hike.
* "Political uncertainty is likely to increase near-term policy uncertainty and lead to tighter financial conditions, which could weigh on growth," the brokerage added.
* Prime Minister Keir Starmer has defied calls from his party's lawmakers to quit, but his failure to alleviate concerns about the cost of living has disappointed voters.
* Chemical shares rose 2.87% on Friday, while auto stocks gained 2.45%.
* The FTSE 100 index has risen 2.65% in the week so far.
