The FTSE 100 showed little movement shortly after noon on Friday, as investors largely chose to remain cautious and avoided making major trades. An improvement in consumer sentiment offered some support to the market, while unexpectedly weak retail sales data weighed on confidence. Around 12:15 PM, the FTSE 100 was marginally higher at 9,838.10, up just 0.33 points, reflecting the subdued trading environment.

DCC led gains on the index, rising nearly 2%, followed by Rolls-Royce Holdings, which advanced 1.7%. Fresnillo, Admiral Group, Melrose Industries, and Metlen Energy & Metals posted gains ranging between 1% and 1.2%. Intercontinental Hotels, Standard Chartered, Barclays, Prudential, SSE, Halma, Reckitt Benckiser, HSBC Holdings, and Babcock International also edged higher, contributing modestly to the index’s stability.

Data showed that UK retail sales unexpectedly fell in November, partly due to a weaker-than-usual boost from Black Friday. Retail sales slipped 0.1% month-on-month, confounding expectations for a 0.3% rise, though the decline was less severe than October’s 0.9% drop. Sales excluding auto fuel fell 0.2% after a 0.8% decline the previous month, against forecasts for a 0.2% increase. On an annual basis, retail sales grew 0.6%, while growth excluding auto fuel slowed to 1.2% from 1.6%.

Separately, data pointed to an improvement in consumer sentiment in December, with the confidence index rising to -17 from -19, its highest level since August 2024. The ONS also reported that the UK budget deficit narrowed to its lowest November level in four years. Public sector net borrowing fell to GBP 11.7 billion from GBP 13.6 billion a year earlier, while borrowing to fund day-to-day operations stood at GBP 5.6 billion, bringing total borrowing for the financial year to date to GBP 93.0 billion.