FTSE 100 today: Index flat, pound slips; retail sales fall in Nov; WH Smith slides
Investing.com -- British stocks traded flat on Friday morning, while the pound weakened against the dollar after data showed UK retail sales unexpectedly fell in November.
As of 0904 GMT, the blue-chip index FTSE 100 slipped 0.02% and the British GBP/USD fell 0.06% against the dollar to above 1.33.
DAX index in Germany fell 0.04%, the CAC 40 in France dropped 0.05%.
UK retail sales unexpectedly fell in November, dropping by 0.1% on the month according to data released by the Office of National Statistics on Friday. This continues the weakness after October’s 0.9% slump, which was revised from a previously recorded drop of 1.1%. Economists had predicted retail sales would rise by 0.3% on a monthly basis.
In UK financial news, Shares of Metro Bank PLC (LON:MTRO) and OSB Group PLC (LON:OSBO) jumped 2% and 3% respectively on Friday after both UK lenders received regulatory approval to exit a debt regime that has cost them millions in annual interest expenses.
The Prudential Regulation Authority confirmed both banks will be reclassified as transfer firms under the Minimum Requirement for Own Funds and Eligible Liabilities (MREL), effective January 1, 2026.
In other company news, WH Smith PLC (LON:SMWH) reported a fall in full-year earnings and cut its headline profit forecast to £100-115 million for the year ahead. This figure falls well below earlier guidance of £182.6 million and analyst expectations of around £157 million, as weaker trading profit offset revenue gains.
Shares of WH Smith fell in morning trade. The London-listed travel retailer reported headline group profit before tax and non-underlying items of £108 million for the year ended August 31.
Headline trading profit fell to £159 million from £170 million a year earlier, while diluted headline earnings per share before non-underlying items declined 28% to 43.4p.
The British pound found support after the Bank of England released a statement that was less dovish than anticipated, according to analysis from ING. Several BoE decision-makers highlighted concerns about persistently high wage growth expectations and structural inflation pressures, providing some strength to the currency.
ING analysts predict these wage expectations will likely decline in early 2026 as headline inflation continues to fall.
