FTSE Opens Higher as Retail Sales Beat, House Prices Hit Record

Stock Market News

FTSE rises as UK sales beat forecasts, house prices hit record, Ashmore slides on outflows.

London stocks opened in positive territory on Friday, with traders eyeing fresh economic data and US jobs numbers later in the day. The FTSE 100 rose 0.3% to 9,239.71, the FTSE 250 climbed 0.3% to 21,542.03, and the AIM All-Share gained 0.5% to 765.47.

UK retail sales volumes rose 0.6% in July, double June’s pace and ahead of forecasts. Clothing sales were the standout, up 2.5% on the month, though food and household spending slowed. Annual growth of 1.1% undershot expectations, suggesting households remain cautious as the autumn budget looms.

Meanwhile, UK house prices notched a record high. The Halifax index reported the average price rose 0.3% in August to £299,331, up 2.2% over the year, a touch softer than July’s 2.5% growth but still above consensus.

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In equities, Ashmore Group dropped 7.3% after reporting $5.8 billion in net outflows and a 15% fall in annual pretax profit. Gear4music surged 11% after lifting expectations on the back of a 27% sales jump, while Peel Hunt also gained 11% after flagging a strong start to the financial year, with investment banking activity and trading revenues ahead of last year.

Overnight in the US, Wall Street rallied, with the Dow and S&P 500 each up 0.8% and the Nasdaq climbing 1.0%. Attention now shifts to nonfarm payrolls at 13:30 GMT, a release that could cement expectations for a September Fed rate cut if job creation continues to slow.