By Pranav Kashyap
(Reuters) – London stocks opened lower on Friday as investors digested an unexpected rise in retail sales data, although both indexes were poised to break a two-week losing streak, buoyed by anticipated Bank of England rate (BoE) cuts and healthy corporate updates.
The blue-chip index was down 0.4% after closing at its strongest level since late May in the previous session, while the domestically-focused FTSE 250 index dropped 0.2% after hitting over a two-week high on Thursday.
A 1.7% gain in the industrial metal miners sector kept losses at check, as copper prices rose due to China’s stimulus measures. [MET/L]
Luxury brand Burberry’s 3.6% gain boosted the personal goods sector to lead sectoral gains.
British retail sales figures on Friday showed an unexpected 0.3% rise in September, while analysts had forecast a monthly fall of 0.3%.
The sterling ticked 0.4% higher after the data.
Consumer-focused stocks were the biggest drag on the benchmark, with heavyweight Unilever dropping 1.4%, while British American Tobacco lost 1.6%.
The Dunhill and Lucky Strike maker said a plan has been filed in a Canadian court to potentially resolve and settle its Canadian subsidiary’s tobacco litigation.
Meanwhile, both the FTSE 100 and FTSE 250 were on track to break a two-week losing streak. The FTSE 100 was poised for its best performance in over two months, while the FTSE 250 was set for its strongest week in three.
Gains were mainly powered by Wednesday’s data that showed British inflation fell to 1.7%, below the BoE’s 2% target, bolstering bets for a rate cut on Nov. 7, when the central bank convenes.
The rate-sensitive house-builder’s sector outperformed other sectors, gaining 6.8% this week; however, it was down 1.4% in the current session.
Among other notable moves, Future lost 7.7% after the British publishing firm said CEO Jon Steinberg will step down.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Sonia Cheema)