The mood around the UK economy was today lifted by figures showing retail sales and house price growth.
July retail volumes were boosted by the warm weather and the Women’s Euro 2025 tournament.
Lender Halifax said the UK’s average house price edged up to a record just below £300,000, reflecting three consecutive monthly increases.
FTSE 100 Live Friday
- House prices show North/South divide
- Weather boost for clothing retailers
- Berkeley reports stable trading
Market update: Miners and builders lift FTSE 100, Admiral downgraded
09:43 , Graeme EvansHouse price momentum and a reassuring update by Berkeley today lifted the building sector as the FTSE 100 index rallied ahead of US labour market figures.
Brownfield regeneration firm Berkeley, which is focused on London and South-East, reported stable trading and backed guidance for this and the next financial year.
The shares, which narrowly avoided relegation in this week’s FTSE 100 reshuffle, rose 2% or 60p to 3642p. Barratt Redrow lifted 5p to 365.3p and Taylor Wimpey added 1.3p to 98p.
The FTSE 100 index also benefited from mining strength as gains of 1.5% for Anglo American, Glencore and Rio Tinto underpinned a rise of 23.20 points to 9240.07.
A positive finish to the blue-chip session depended on this afternoon’s US jobs market report, which is forecast to show broadly unchanged non-farm payrolls growth of about 75,000 and a slightly higher unemployment rate of 4.3%.
Fresh evidence of a cooler labour market should reinforce bets on an interest rate cut by the Federal Reserve on 17 September.
The pound strengthened 0,2% to $1.3466 ahead of the release, with sentiment further boosted by robust figures from the UK economy as retail sales rose by more than expected in July and house prices lifted 0.3% in August.
UK bellwethers Lloyds Banking Group and Next added 0.1p to 80.6p and 40p to 12,140p respectively but NatWest drifted 5.2p to 512.8p and Marks & Spencer fell 1.6p to 338p.
The best performers in the FTSE 100 were Babcock International, which lifted 327p to 1095p, and GKN Aerospace business Melrose Industries after a gain of 12.4p to 612.4p.
Insurance giant and new Direct Line owner Aviva lifted 7.4p to 653.2p after Goldman Sachs unveiled a Buy recommendation and price target of 736p.
Car insurer Admiral headed the other way, falling 2% or 76p to 3368p after Peel Hunt downgraded to Sell due to a deteriorating UK margin outlook.
In the FTSE 250, the shares of emerging markets-focused fund manager Ashmore surrendered some of their recent gains in response to annual results.
The fall of 9.3p to 161.8p followed a bigger-than-expected decline in second half adjusted earnings, a miss UBS said was driven by weaker management fees.
The bank cut its forecasts for future years but retains the stock as Buy.
It said: “In the coming quarters/years, we expect global fixed income investors to increase allocations to emerging markets debt and equity as they reduce their overweight US dollar positions.
“This should provide tailwinds to Ashmore's assets under management growth.”
AIM-listed Peel Hunt rose 11% or 10.8p to 112.3p after the investment bank upgraded guidance on the back of robust levels of M&A activity.
Gear4Music rose 20p to 285p after the UK’s largest retailer of musical instruments and equipment said recent strong sales momentum has continued.
It bolstered expectations for the March financial year, helping extend the rise for shares since early April to 190%.
Labour market figures set to test US rate cut bets
08:45 , Graeme EvansWall Street expectations of a September US interest rate cut will be put to the test later with the release of August’s labour market report.
The figures are expected to show broadly unchanged non-farm payrolls growth of 75,000 and a slightly higher unemployment rate of 4.3%.
More signs of a cooler labour market should reinforce bets on an interest rate cut by the Federal Reserve on 17 September,
The focus is also on potential revisions to previous reports after August’s release included big downward changes to May and June estimates.
Julien Lafargue, chief market strategist at Barclays Private Bank, said: “With recent concerns over the reliability of labour market data and substantial revisions to previous months, investors are approaching this release with caution.
“The central question remains: is the US labour market beginning to show real signs of strain? Recent indicators, including Thursday’s ADP employment report, suggest a clear loss of momentum.
“While the difference between a “good” and a “bad” report may only be a few thousand jobs, it would take a significantly stronger-than-expected payrolls figure to challenge the prevailing market view that the Federal Reserve is on course to cut interest rates at its September meeting.”
Miners support FTSE 100, Berkeley shares higher on update
08:21 , Graeme EvansThe FTSE 100 index is 4.86 points higher at 9221.73, a performance underpinned by share price gains of 1% for miners Rio Tinto, Glencore and Anglo American.
On the fallers board, NatWest shares dropped 5.8p to 512.2p and Tesco weakened 2.8p to 436p.
Berkeley Group shares rose 44p to 3626p after it reported stable trading and reiterated guidance for the current and next financial years.
In the FTSE 250, emerging markets asset manager Ashmore fell 5% or 8.4p to 162.7p as investors reacted to annual results.
AIM-listed Peel Hunt rose 11% or 11p to 112.5p after upgrading guidance on the back of robust levels of M&A activity.
Peel Hunt lifts guidance after M&A boost
07:38 , Graeme EvansInvestment bank Peel Hunt today lifted its results guidance, boosted by stronger than expected activity in the first six months of the financial year.
The group has acted on a number of substantial M&A transactions, while it has supported clients on a number of equity raises and block trades.
Peel Hunt’s corporate franchise has 58 FTSE 350 clients, including five from the FTSE 100.
It said revenues in execution services have been materially ahead of the prior year.
The AIM-listed group said: “As a result of this activity, we expect to deliver full year results ahead of market expectations.”
Average house price edges up to new record
07:22 , Graeme EvansHouse prices increased by 0.3% in August, marking a third consecutive monthly rise in the figures compiled by mortgage lender Halifax.
The average property price is now £299,331, edging up to a new record high The annual rate of growth eased slightly to 2.2%, down 2.5% in July.
Halifax said its figures showed a North/South divide, with the North East recording the fastest pace of annual growth of 4.7% and the North West up 4.5%.
This compares with Greater London’s 0.8% and the South East’s rate of 0.3%.
Halifax head of mortgages Amanda Bryden said: “The story of the housing market in 2025 has been one of stability. Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures.
“Affordability remains a challenge, but there are signs of improvement. Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4%.”
Berkeley on track amid “stable” trading performance
07:13 , Graeme EvansHousebuilder Berkeley today described trading as stable in the first four months of its financial year, following a similar pattern to the previous year.
The FTSE 100-listed regeneration specialist remains on track to achieve its pre-tax earnings guidance of £450 million for the full year ending 30 April.
About 85% of this has already been secured through exchanged sales contracts.
It expects a similar level of profit in 2027, in line with guidance given at full-year results.
Retail sales higher in July amid weather boost
07:07 , Graeme EvansRetail sales figures for July today came in ahead of expectations after the Office for National Statistics reported volume growth of 0.6%.
The reading followed the previous month’s downwardly revised 0.3% rise and was better than City forecasts for growth of 0.2%.
The ONS said sales volumes in clothing stores grew strongly in July, which retailers attributed to new products, good weather and an increase resulting from the Women’s Euro 2025 tournament.
Sales volumes across the three months to July fell by 0.6% compared with the previous quarter, ending a run of four months of consecutive growth.
FTSE 100 set to hold gains, gold demand continues
07:01 , Graeme EvansThe FTSE 100 index is poised to hold on to its recent gains after Wall Street markets finished in positive territory last night.
London’s top flight forged ahead on Thursday as the bond market calmed further and investors bet on a Federal Reserve interest rate cut.
The FTSE 100 index closed up 38.88 points or 0.4% at 9216.87 and is forecast to open slightly higher this morning.
The Dow Jones Industrial Average and the S&P 500 last night rose 0.8%, while the tech-focused Nasdaq Composite lifted 1%.
The gains came ahead of today’s non-farm payrolls report, which is expected to show an increase in line with the previous month’s reading of 73,000.
In Asia, Tokyo’s Nikkei 225 lifted 0.9% after President Trump reduced tariffs on Japanese car imports to 15% from 27.5% previously.
Meanwhile, the gold price stayed in record territory by trading at $3556 an ounce.
