Friday trading opened with the UK’s blue-chip FTSE 100 index rising by 0.3%, demonstrating relative strength against neighboring European markets that registered small losses. By 0823 GMT, the FTSE 100 had edged upward while both Germany’s DAX and France’s CAC 40 indices each fell by 0.1%. Concurrently, the British pound slipped marginally against the US dollar, trading down 0.04% to 1.3488.
This upward trajectory in the UK comes as the latest retail sales data unveiled by the Office of National Statistics highlights a 0.4% month-on-month gain in December. This rebound follows a decline in November, surpassing economists' expectations which had forecast no change during the month. On a yearly comparison, retail sales surged 2.5% in December, marking an improvement over the revised 1.8% annual rise in November and significantly outpacing predictions of a 1.0% increase.
In the corporate sphere, C&C Group plc adjusted its profit forecast downward for the fiscal year 2026. The beverage company now anticipates its adjusted operating profit to fall between €70 million and €73 million. The firm attributes the revised outlook to diminished consumer confidence stemming from the UK Government's November Budget, which negatively affected customer activity in late autumn and early winter.
Conversely, Babcock International Group PLC reported sustained organic revenue growth into its third quarter, reinforcing its confidence in achieving a full-year margin target of 8%. The defense contractor also announced a forthcoming leadership change: CEO David Lockwood is scheduled to retire, with his successor selected from within the Nuclear sector.
Record PLC, a fund management company, saw its assets under management increase to $115.9 billion by December-end, up from $110.3 billion in September. The growth was driven by strong net inflows and underlying asset appreciation, though these gains were partly offset by currency fluctuations.
In executive appointments, Pets at Home Group PLC confirmed the incoming appointment of Sarah Pollard as Chief Financial Officer Designate, effective March 23, 2026. She will take over from Mike Iddon, who is set to step down from the Board by March 27, 2026.
Market participants remain focused on how these mixed signals from retail activity, corporate earnings outlooks, and leadership changes will influence investor sentiment ahead of the Bank of England’s imminent monetary policy decision.