UK equity markets pushed higher on Friday after retail sales data comfortably beat expectations, providing a domestic boost amid escalating geopolitical risks.
The FTSE 100 gained 0.32% by 03:27 ET, while Germany’s DAX climbed 0.88% and France’s CAC 40 added 0.23% across broader European trade.
Sterling also strengthened during the session, with GBP/USD rising 0.20% to 1.3341 as the positive UK data lifted sentiment toward the pound.
The Office for National Statistics reported that retail sales volumes increased by 1.0% in June, far exceeding forecasts that had pointed to a 0.3% decline.
On an annual basis, retail sales rose 4.2%, significantly ahead of forecasts for 2.3%, with seasonal clothing, air conditioning products and World Cup-related spending all cited as drivers.
Geopolitical tensions continued to weigh on broader investor sentiment after U.S. Central Command confirmed it had carried out a 13th consecutive night of military strikes against Iranian targets.
Strikes hit command facilities, drone storage locations and coastal surveillance sites, with Iranian state broadcaster IRIB reporting explosions across several provinces and two injuries near Bandar Abbas.
Iranian Foreign Minister Abbas Araghchi accused “compromised individuals” in Washington of pursuing “mindless aggression” that would increase the cost of any future agreement.
Political divisions emerged in Washington as the U.S. House of Representatives voted 214-208 to limit President Donald Trump’s authority to continue military action without congressional approval, though a Senate vote failed 47-49.
Axios reported Trump is considering a larger military operation than February’s “Operation Epic Fury,” with the president quoted as saying, “I am considering a massive attack. Bigger than ever before.”
Secretary of State Marco Rubio added that Iran would continue to pay “a very heavy price” as diplomatic channels appeared to narrow further.
Trade policy added further pressure after a new round of U.S. tariffs on imports from 60 trading partners came into force, with duties ranging from 10% to 12.5% affecting China, India and EU members.
U.S. Trade Representative Jamieson Greer said the measures target nations that do not prohibit imports linked to forced labour, framing the tariffs as a compliance-driven policy tool.
Oil markets retreated despite the heightened conflict backdrop, with Brent crude falling 1.92% to $98.76 per barrel and West Texas Intermediate declining 1.83% to $90.47.
Gold prices were broadly steady, with futures edging up 0.04% to $4,051.87 per ounce and spot gold slipping just 0.01% to $4,049.27.
Reckitt Benckiser (LSE:RKT) agreed to sell its Russian hygiene business to Arnest Management LLC, with the company expecting to record an estimated post-tax loss of approximately £175 million on the transaction.
discoverIE (LSE:DSCV) reported a strong start to its financial year, with organic orders increasing 31% and sales rising 6% during the first quarter, pushing full-year earnings expectations above prior board guidance.
Hyperoptic announced its fibre broadband network has now reached two million homes and business premises, with the company shifting focus toward subscriber growth following strong revenue performance.