London equities exhibited minimal movement on Friday as investors adopted a cautious stance in anticipation of a crucial U.S. inflation report. Meanwhile, the primary indexes were positioned for weekly gains, bolstered by indications of moderating domestic inflation and a reduction in trade tensions. The blue-chip FTSE 100 is little changed at 1118, hovering near a record high, while the mid-cap FTSE 250 slips 0.1%, pinned near levels last seen in early 2022. Both indexes are poised to conclude the week on an upward trajectory, contingent on the sustainability of current gains. The FTSE 100, which has a significant international focus, is positioned for its most substantial weekly increase in over six months, following market relief stemming from indications of a de-escalation in Sino-U.S. trade tensions.

This week has proven favorable for domestically oriented firms, as the mid-cap index is on track for its most significant weekly increase in four months, following unexpectedly low inflation data that has heightened anticipations of a 25 basis point interest rate cut by the Bank of England in December. Friday’s data indicate that retail sales have unexpectedly increased for the fourth consecutive month, driven primarily by sales in the technology and jewelry sectors. The broader retail sector increased by 1%.

Corporate earnings are currently being reported extensively in Britain. NatWest gained 2.6% to a near two-decade high after the bank reported a 30% rise in third-quarter profit and upgraded its 2025 performance target. WH Smith rises 3.4% and is among the best FTSE 250 performers after brokerage Peel Hunt upgraded the travel retailer to “buy” from “hold”. Precious metal miners fell 2%, leading sector declines while tracking a profit-taking sell-off in gold, which is on course for its first weekly drop in 10 weeks. London Stock Exchange Group rose 4.1% to the top of the FTSE 100 after at least three brokerages raised target prices following upbeat third-quarter results on Thursday.

Investor attention is currently directed towards U.S. consumer price data scheduled for release later today, occurring amidst the context of a continuing U.S. government shutdown. The forthcoming data will significantly influence the Federal Reserve’s policy deliberations during its upcoming meeting next week.