Retail sales figures today provided more evidence of the UK’s faltering year-end performance.
The UK's FTSE 100 index reached a new record high despite disappointing retail sales figures for December. The index was boosted by strong performances from oil giants BP and Shell, as well as a weaker British pound which benefits companies that earn revenue overseas.
Weaker-than-expected retail sales fueled expectations of an interest rate cut by the Bank of England, leading to gains in housebuilder and property stocks.
In summary, the FTSE 100's record performance highlights a disconnect between the improving stock market and the UK's struggling economy, as evidenced by the fall in retail sales.
The UK's FTSE 100 index reached a new record high despite disappointing retail sales figures for December. The index was boosted by strong performances from oil giants BP and Shell, as well as a weaker British pound which benefits companies that earn revenue overseas. Weaker-than-expected retail sales fueled expectations of an interest rate cut by the Bank of England, leading to gains in housebuilder and property stocks. In summary, the FTSE 100's record performance highlights a disconnect between the improving stock market and the UK's struggling economy, as evidenced by the fall in retail sales.
