The UK’s blue-chip FTSE 100 index appeared poised to conclude a four-week losing streak, following the release of data this week that diminished expectations for a Bank of England rate hike. This development provided a measure of relief to investors who have been unsettled by ongoing political uncertainty.

The blue-chip FTSE 100 index rose 0.21% as of 11:18 am on Friday, while the midcap FTSE 250 climbed 0.57%.

• British retail sales experienced a significant decline in April, marking the largest drop in nearly a year, as indicated by official figures released on Friday. This development contributes to the growing evidence of diminishing consumer spending amid the ongoing conflict in the Middle East and escalating energy prices.
• Earlier this week, separate data also indicated that inflation in April was softer than anticipated, while the unemployment rate experienced a slight increase.
• “Dovish data should ​reduce the urgency for the BoE to act. So far the MPC (Monetary Policy ‌Committee) ⁠is taking comfort from tightening in financial conditions which they say can give them time to assess whether to hike or not,” analysts said.
• The broking now anticipates that the central bank will increase borrowing costs in July, a shift from its earlier projection of a June hike.
• “Political uncertainty is likely to increase near-term policy uncertainty and ​lead to tighter financial conditions, which could weigh on ​growth,” the ⁠brokerage added.
• Prime Minister Keir Starmer has resisted pressure from his party’s lawmakers to resign, yet his inability to address worries regarding the cost of living has left voters disillusioned.
• Chemical shares rose 2.87% on Friday, while auto stocks gained 2.45%.
• The FTSE 100 index has risen 2.65% in the week so far.