British stocks rose on Friday as markets responded positively to signals of easing tensions in the U.S.-China trade dispute, while better-than-expected British retail sales data further bolstered investor sentiment.

As of 1005 GMT, the blue-chip FTSE 100 index was up 0.1%, extending its winning streak to ten consecutive sessions and securing its second straight week of gains. Meanwhile, the domestically focused midcap index gained 0.4%, positioning itself for its third consecutive weekly advance.

China has begun granting exemptions to its recent 125% tariffs on U.S. imports, suggesting Beijing may be concerned about economic consequences of the trade dispute.

Washington has also shown signs of wanting to de-escalate tensions, bringing relief to markets as investors hope for a reduction in trade hostilities between the world’s two largest economies.

Separately, British retail sales unexpectedly rose 0.4% in March, capping the strongest quarter since 2021. However, this economic bright spot appears temporary as consumer confidence fell in April to its lowest level since late 2023 amid rising energy costs. Outlook statements this month from major British retailers have also been downbeat.

On the stock indexes, the aerospace and defence sector emerged as the leading performer, climbing 2%. Engineering firm Babcock International Group advanced 3% and was among the FTSE 100’s top gainers after forecasting annual operating profit above market estimates.

Travel and Leisure stocks also climbed 1%.

Conversely, shares of Mobico Group plummeted 27%, making it the midcap index’s worst performer, after announcing the sale of its U.S. school bus business for a lower-than-expected $608 million and projecting 2024 earnings at the bottom end of its guidance range.

Source: Globalbankingandfinance