FTSE 100 down 0.5
Retail sales rose 1 in August
FTSE, FTMC both set for weekly gains
Burberry falls after Jefferies downgrage

Sept 20 Reuters UK shares slipped on Friday while the British pound jumped, though the stock index was set to eke out weekly gains riding on a rise in global risk sentiment following the U.S. Federal Reserve39;s bumper rate cut.

At 0715 GMT, the FTSE 100 fell 0.5, as a 0.4 rise in the British pound pressured exportoriented companies. The more domesticallyfocussed midcap index lost 0.7.

British retail sales rose by a strongerthanexpected 1 in August, beating forecasts for a monthly rise of 0.4 and growth in July was revised up, data showed.

The data lifted the pound, which has risen to its highest level against the dollar since 2022 this week after the Federal Reserve cut rates by 50 basis points, while the Bank of England kept rates on hold at its meeting on Thursday.

Friday declines were broad based, with all sector indexes flat or lower, led by a 4.5 drop in the personal goods index.

The FTSE 100 was set to rise marginally, about 0.2 for the week, while the midcap index was on track for weekly gains of 0.6, with both on track for the second consecutive week of gains.

Markets rallied on Thursday after the Fed39;s 50 bps reduction, with the FTSE 100 touching a two week high.

However, UK stocks continue to lag both U.S and euro zone equities this year, with both the Fed and European Central Bank expected to ease rates faster than the…