FTSE 100 Hits New High on Strong UK Retail Sales

The UK FTSE 100 index rose by 0.91% to reach its highest level since early March, settling at 10,736 points.

This uptrend was driven by strong retail sales data across the United Kingdom, which exceeded market expectations.

According to the Office for National Statistics (ONS), year-on-year retail sales accelerated from 3.5% in May to 4.2% in June, surpassing forecasted growth of 2.3%. On a month-on-month basis, retail sales volume increased by 1.0%, defying estimates of a 0.3% contraction.

The resilient retail demand and stable labour market conditions are seen as diminishing the need for the Bank of England (BoE) to adopt a more restrictive monetary policy amidst global geopolitical headwinds.