London stocks opened slightly higher on Friday, buoyed by upbeat UK retail sales data and strong gains for NatWest, while investors awaited a raft of PMI surveys and US inflation figures later in the day.
The FTSE 100 rose 0.1% to 9,588.29, the FTSE 250 gained 0.1% to 22,371.87, while the AIM All-Share slipped 0.4% to 772.40.
September’s stronger-than-expected retail sales reinforced signs of resilience in the UK economy. The Office for National Statistics said sales volumes rose 0.5% month-on-month, beating expectations for a 0.2% decline and following August’s 0.6% gain. Sales volumes are now at their highest since mid-2022, marking four straight months of growth. Over the three months to September, sales rose 0.9% compared with the previous quarter, signalling a solid rebound after a muted first half of the year.
NatWest Group topped the FTSE 100, jumping 3.5% after raising full-year guidance and reporting a 30% year-on-year rise in third-quarter pretax profit to £2.18 billion. Total income climbed 16% to £4.33 billion, ahead of consensus estimates, with strong growth in both net interest and non-interest income.
London Stock Exchange Group rose 3.2% after JPMorgan and Goldman Sachs raised their price targets to 13,300p and 13,790p respectively, both keeping bullish ratings.
Kingfisher added 1.9% after an upgrade from RBC to “outperform” with a higher 350p target.
GSK slipped 1.7% despite winning US FDA approval for its cancer drug Blenrep in combination therapy for relapsed or refractory multiple myeloma. Phase III data showed a 51% reduction in death risk and a tripling of median progression-free survival. Chief Scientific Officer Tony Wood called the approval a “significant milestone” for community-based oncology care.
In the FTSE 250, WH Smith gained 4.1% after Peel Hunt raised its rating to “buy” and upped its price target to 800p.
Among small caps, Capricorn Energy surged 9.1% after reaffirming full-year output guidance of 17,000–21,000 barrels of oil equivalent per day and confirming a $50 million payment from Egypt’s state oil company, leaving receivables at about $115 million.
On Wall Street, the Dow rose 0.3%, the S&P 500 added 0.6%, and the Nasdaq climbed 0.9% overnight. With the US government still in partial shutdown, data releases are limited, though the Bureau of Labor Statistics is set to publish September inflation figures later today. Consensus expects headline CPI at 2.9%, with easing in airfares, hospitality, and housing likely to temper price pressures.