Investing.com — British stocks rose Friday as fresh signs of economic momentum, strong retail sales and a rebound in private-sector activity, outweighed the escalating U.S.-Iran conflict, though oil’s losses deepened as the session progressed.
As of 09:03 ET (13:03 GMT), the was last up 0.33%. Germany’s gained 0.88% and France’s added 0.31%. Sterling reversed earlier gains, with GBP/USD down 0.02% at 1.3312.
UK private sector activity expanded in July for the first time in three months, according to S&P Global’s flash PMI data released Friday.
The Composite Output Index rose to 52.1 from 49.3 in June, a three-month high. Services activity climbed to 51.8 from 48.8, helped by hospitality gains tied to the FIFA World Cup, though some firms said unusually hot weather weighed on activity.
Manufacturing output grew for a fourth straight month, with the Output Index at 53.6, a 22-month high, as goods producers cited stronger new orders, including robust demand linked to AI rollouts, data-centre supply chains and defence spending.
Input price inflation eased for a third consecutive month, while private-sector employment fell for a thirty-ninth straight month, with services cutting headcount as manufacturers added marginally. Business activity expectations reached their highest level since February.
The PMI data followed news that UK retail sales volumes rose 1% in June, confounding expectations for a 0.3% decline, the ONS said, as shoppers spent more on air conditioning and clothing amid warmer weather and World Cup-related purchases.
Annual sales growth of 4.2% far outpaced forecasts of 2.3%. UK inflation had also slowed in June as motor fuel and food prices eased during a brief Gulf ceasefire, while the labour market showed signs of stabilising.
U.S. Central Command said it carried out its 13th consecutive night of strikes against Iran, hitting military command centres, drone storage sites and coastal surveillance infrastructure.
Iranian state broadcaster IRIB reported explosions across multiple provinces and said two people were injured near Bandar Abbas. Iran’s Foreign Minister Abbas Araghchi accused “compromised individuals” in Washington of pursuing “mindless aggression” that would raise the cost of any eventual deal.
Adding to the pressure on risk sentiment, the U.S. House voted 214-208 on Thursday to restrict U.S. President Donald Trump’s authority to continue strikes without congressional approval, though the Senate rejected a parallel measure 47-49.
Axios separately reported Trump is weighing a offensive that could exceed the scale of February’s “Operation Epic Fury,” quoting him, “I am considering a massive attack. Bigger than ever before.” Secretary of State Marco Rubio said Iran would keep paying “a very heavy price.”
Separately, a new wave of U.S. tariffs on 60 trading partners took effect Friday, ranging from 10% to 12.5% and hitting China, India and the EU among others, after an earlier global duty expired. U.S. Trade Representative Jamieson Greer said the levies target countries lacking forced-labour import bans.
Oil extended losses, with down 3.3% at $97.42 a barrel and down 2.92% at $89.50. edged higher, with futures up 0.13% at $4,055.15 and up 0.07% at $4,052.55.
UK round up
agreed to divest its Russian hygiene business to Arnest Management LLC, taking an estimated post-tax loss of about £175 million from its exit.
Hyperoptic said its fibre network reached 2 million homes and businesses, shifting its strategy from network expansion to subscriber growth after strong revenue gains.
discoverIE Group reported a strong first quarter with organic orders up 31% and sales up 6%, saying full-year adjusted earnings are tracking ahead of board expectations.