British Stocks Climb amid Trade Optimism and Strong Retail Sales

British stocks rose as easing U.S.-China trade tensions and surprisingly positive retail sales data boosted market sentiment. The FTSE 100 and midcap indexes saw gains, driven by sectors like aerospace and travel. However, not all were winners, as Mobico Group and Unilever faced notable declines.

British stocks experienced an uptick on Friday, buoyed by signs of improving U.S.-China trade relations and remarkably strong domestic retail sales figures.

By 1125 GMT, the FTSE 100 rose by 0.07%, marking its path towards ten consecutive days of gains, while the midcap index increased by 0.4%.

China's decision to exempt certain U.S. imports from hefty tariffs was mirrored by Washington's hints at wanting reduced tensions, offering a glimmer of hope for investors eager for peace between the global economic giants.

Despite an unexpected 0.4% rise in March's British retail sales contributing to the strongest quarterly performance since 2021, April saw a dip in consumer confidence due to surging energy costs.

Aerospace and defence led sectoral growth in the stock indexes, with engineering firm Babcock International Group among the top gainers. Travel and Leisure saw a 0.7% uptick.

In contrast, Mobico Group's shares plunged 35% following a selloff of its U.S. school bus business, disappointing investors with underwhelming future earnings predictions. Consumer goods giant Unilever fell 1.6% after a Deutsche bank downgrade.

(With inputs from agencies.)