London open: FTSE falls after Thursday's gains; retail sales bounce back

18th Sep 2026 07:49

(Sharecast News) - London stocks fell in early trade on Friday following strong gains in the previous session, as investors mulled a rebound in UK retail sales data.

At 0900 BST, the FTSE 100 was down 0.4% at 10,768.03, while Brent crude was down 2.2% at $102.54 a barrel and West Texas Intermediate was 1.9% lower at $99.93.

Figures released earlier by the Office for National Statistics showed that retail sales unexpectedly bounced back in August.

Sales rose 0.5% on the month following a 0.5% decline in July, beating expectations for a 0.2% fall.

On the year, sales were 2.4% higher in August.

In the three months to August, sales were up 0.9%, the ONS said, with warm weather lifting sales of items such as fans and air conditioning units, and retailers also benefitting from sales of sports merchandise and clothing.

ONS senior statistician Jon Gough said: "Retail sales increased in the latest three months, with a particularly strong June for online outlets helping to boost their sales across the period. Food store sales also rose, with supermarkets doing well in July and August.

"Meanwhile, retailers selling alcohol and beverages performed well across all three months, which they attributed to promotions, the hot weather and the World Cup."

Investors were also digesting an expected 25 basis points rate hike by the Bank of Japan to 1.25% - the highest level since 1995. The decision was split 7-2.

The BoJ said in a statement: "As for the future conduct of monetary policy, given that underlying CPI inflation has been approaching 2% and financial conditions have been accommodative, the Bank will continue to raise the policy interest rate and adjust the degree of monetary accommodation, in response to developments in economic activity and prices as well as financial conditions."

Corporate news was scarce, but banking and wealth management group Investec was in focus as it said first-half results were set to be in line with the guidance given in May.

Elsewhere, Harworth nudged lower as it rejected a sweetened takeover offer from its largest shareholder, Peel Holdings.