London close: FTSE ends up amid peace hopes; borrowing, retail sales data in focus

(Sharecast News) - London stocks ended up on Friday amid renewed hopes of a peace deal between the US and Iran, as investors mulled a bigger-than-expected drop in UK retail sales and higher-than-expected borrowing figures.

The FTSE 100 closed up 0.2% at 10,466.26, while sterling was 0.1% firmer against the dollar at 1.3444. At the same time, Brent crude was 1% higher at $103.64 a barrel.

Kathleen Brooks, research director at XTB, said: "The market continues to think that a deal between the US and Iran is likely, even if we have had mixed messages from both sides. The US has said that a deal is near, but Iran cannot have a nuclear weapon, whereas, Iran has said that it wants to keep its uranium stores.

"From a trading perspective, it is best to ignore the noise and rhetoric from both sides and concentrate on the numbers. Lower oil prices and bond yields can keep stocks supported in the short term, even if the longer-term outlook depends on the full reopening of the Strait of Hormuz."

On home shores, figures from the Office for National Statistics showed the government borrowed more than expected in April.

Borrowing came in at £24.3bn last month, up £4.9bn on the same time a year earlier. It was also £3.4bn more than the £20.9bn forecast by the Office for Budget Responsibility.

ONS chief economist Grant Fitzner said: "Borrowing this month was substantially higher than in April last year and although receipts increased compared to with April 2025, this was more than offset by higher spending on benefits and other costs."

Government spending on benefits rose by £2.7bn to £29.5bn. The ONS said this was due mainly to inflation-linked increases in many benefits and earnings-linked increases to State Pension payments.

The figures also showed that government debt interest payable increased by £0.9bn to £10.3bn.

Separate data from the ONS showed that retail sales fell more than expected in April, with drivers conserving fuel amid rising prices.

Retail sales volumes declined by 1.3% following a revised 0.6% increase the month before. This was the worst monthly drop since May 2025, when sales were down 1.4%, and much steeper than expectations for a 0.6% fall.

Automotive fuel sales slumped 10.2% - the largest monthly fall since November 2020. The ONS said retailers suggested that motorists were making fewer journeys and were delaying filling their tanks while prices rose. This followed a spike in March, when motorists stocked up after the outbreak of the conflict in the Middle East.

ONS chief economist Grant Fitzner said: "After strong growth last month, motor fuel sales fell in April, with evidence suggesting motorists were conserving fuel after stocking up in March.

"These subdued fuel purchases contributed to a sizeable monthly fall for retail total retail sales in April."

In equity markets, Warhammer maker Games Workshop jumped after saying it expects higher revenue and profits in the year to May, but that licensing revenue would likely be lower.

Ceres Power surged after UBS hiked its price target on the stock to 970p from 570p, pointing to stronger royalties from manufacturing partners into 2030.

Bodycote shot up as it confirmed it has received a conditional takeover proposal from private equity firm Apollo Management. The offer comprises 885p per share in cash and the proposed final dividend of 16.1p per share for the 2025 financial year.

Softcat rallied as it lifted its full-year profit outlook, saying it continued to perform well in the third quarter, delivering strong double-digit year-on-year growth in gross profit and underlying operating profit.

Automotive distributor Inchcape gained after agreeing to buy Silver Star, the official distributor of Mercedes-Benz passenger vehicles and Daimler trucks and buses in Bulgaria, for an undisclosed sum.

On the downside, Genuit slumped as it warned full-year underlying operating profit would be towards the lower end of current analyst forecasts of £94.7m to £105.5m.

Market Movers

FTSE 100 (UKX) 10,466.26 0.22%

FTSE 250 (MCX) 23,167.47 0.96%

techMARK (TASX) 6,068.76 0.98%

FTSE 100 - Risers

Games Workshop Group (GAW) 20,560.00p 7.93%

Rightmove (RMV) 440.60p 7.25%

Croda International (CRDA) 2,991.00p 4.29%

Metlen Energy & Metals (MTLN) 38.98p 3.62%

Rolls-Royce Holdings (RR.) 1,248.80p 3.36%

Flutter Entertainment (DI) (FLTR) 7,376.00p 3.13%

Persimmon (PSN) 1,094.00p 2.96%

3i Group (III) 2,310.00p 2.67%

Melrose Industries (MRO) 509.60p 2.64%

Diploma (DPLM) 7,025.00p 2.63%

FTSE 100 - Fallers

Convatec Group (CTEC) 197.00p -3.24%

BP (BP.) 551.20p -2.48%

Experian (EXPN) 2,591.00p -2.04%

Lion Finance Group (BGEO) 10,640.00p -1.85%

Fresnillo (FRES) 3,236.00p -1.82%

Sainsbury (J) (SBRY) 309.60p -1.75%

Compass Group 11 (CPG) 31.13p -1.33%

The Sage Group (SGE) 878.80p -1.24%

Prudential (PRU) 1,130.50p -1.22%

Reckitt Benckiser Group (RKT) 4,673.00p -1.12%

FTSE 250 - Risers

Ceres Power Holdings (CWR) 807.50p 21.43%

Bodycote (BOY) 831.50p 19.04%

Softcat (SCT) 1,627.00p 12.83%

Raspberry PI Holdings (RPI) 749.00p 11.29%

Oxford Instruments (OXIG) 3,154.00p 6.41%

Applied Nutrition (APN) 229.00p 6.02%

easyJet (EZJ) 370.20p 5.68%

AJ Bell (AJB) 643.00p 5.07%

Zigup (ZIG) 454.50p 4.60%

Hill and Smith (HILS) 2,760.00p 4.35%

FTSE 250 - Fallers

Ithaca Energy (ITH) 243.80p -4.84%

Diversified Energy Company (DI) (DEC) 1,152.00p -4.00%

Shawbrook Group (SHAW) 304.50p -3.03%

Patria Private Equity Trust (PPET) 604.00p -2.58%

Pan African Resources (PAF) 134.20p -2.47%

Hochschild Mining (HOC) 572.00p -2.39%

Bluefield Solar Income Fund Limited (BSIF) 79.00p -2.35%

ICG Enterprise Trust (ICGT) 1,324.00p -2.22%

C&C Group (CDI) (CCR) 108.00p -2.17%

Foresight Environmental Infrastructure Limited (FGEN) 76.00p -2.06%