London stocks inch lower after strong retail sales data; PMI figures loom

London's FTSE opened slightly lower on Friday after a hot reading of British retail sales data, but was set to log a weekly gain for the first time in six weeks.

The benchmark FTSE 100 edged 0.1 per cent lower by 7:10 GMT while the mid-cap FTSE 250 gained 0.1 per cent, and was on track to log its first weekly gain in four.

British retail sales volumes rose by 2.9 per cent in May, rebounding sharply from a revised 1.8 per cent decline in April. Economists' poll had forecast sales volumes would increase by 1.5 per cent.

The data highlighted the resilience of the British consumer, prompting traders to remain on the sidelines and await the purchasing managers' index (PMI) figures due later in the day.

However, investor sentiment in Britain is gradually brightening after comments from the Bank of England on Thursday brought an August rate cut into play. Markets are pricing in a 50-50 chance for an August cut.

Among individual stocks, United Utilities gained 2.1 per cent after J.P.Morgan upgraded the stock to "overweight" from "neutral".

Britvic surged 15.2 per cent after the soft drinks maker rejected a revised, unsolicited, possible cash offer from Carlsberg Group.