UK's FTSE 100 set to snap four-week losing streak as rate hike fears ease

‌UK's ​blue-chip FTSE 100 index was on course to end a four-week losing streak after data released this week weakened expectations of ‌a Bank of England rate hike, giving relief to investors unsettled by political uncertainty.

The blue-chip FTSE 100 index rose 0.21% as of 11:18 am GMT on Friday, while the midcap FTSE ‌250 climbed 0.57%. * British retail sales fell by the most in nearly a year ‌in April, according to official figures published on Friday, adding to signs of waning consumer spending against the backdrop of the Middle East war and rising energy costs.

* Earlier this week, separate data also showed that inflation ⁠in ​April was softer ⁠than expected, while the unemployment rate ticked up. * "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," BofA Securities analysts said.

* ⁠The brokerage now expects the central bank to raise borrowing costs in July, later than its previous estimate ⁠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 defied calls from his party's lawmakers to quit, but his failure to alleviate concerns about ⁠the cost of ⁠living has disappointed voters. * 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.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)