Retail sales fall unexpectedly in October
LSEG shares edge up after strategy update
FTSE 100 up 1.1, FTSE 250 adds 1.3

Nov 17 Reuters UK39;s main stock indexes rallied over 1 on Friday and were on track for steep weekly gains after a slew of economic data spurred expectations among investors that interest rates have peaked.

The bluechip FTSE 100 rose 1.1, while the midcap FTSE 250 index added 1.3.

Despite Thursday39;s selloff, the indexes looked set to end the week sharply higher as cooling inflation and signs of softening economic growth spurred bets of interest rates cuts by the Bank of England.

British retail sales volumes fell unexpectedly in October as stretched consumers stayed at home, official data showed on Friday in a new warning sign for the economy.

This is a supertough environment for retailers given that this riskaverse sentiment to big spending is coming at such a crucial time in the calendar, which should be the cashcow quarter for retailers, said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

The data painted a gloomy picture of UK consumers, but also meant that traders were pricing in the possibility of interest rate cuts.

Futures markets show traders expect interest rates to fall by around 80 basis points by the end of 2024 from 5.25 currently, compared with a decline of just over 50 bps a week ago.

Shares of the London Stock Exchange Group reversed course to edge up 0.4 after the stock exchange operator raised its…