London Stocks Teeter Amid Retail Surge, Stronger Sterling

London's stock markets opened lower due to unexpected retail sales rise but are set to end a two-week losing streak, supported by anticipated rate cuts and positive corporate news. Key sectors such as industrial metal miners and luxury brands contributed to gains, while consumer-focused stocks dragged down performance.

London stocks were under pressure on Friday morning, reacting to unforeseen growth in retail sales. Despite the early slump, both major indexes looked to rebound, driven by anticipated rate cuts from the Bank of England and robust corporate earnings reports.

The FTSE 100 slipped by 0.4%, having previously reached its highest point since May, while the FTSE 250 saw a 0.2% decline after a recent high. Industrial metal miners cushioned the blow with a 1.7% rise, buoyed by climbing copper prices due to China's stimulus.

Results from luxury brand Burberry, which saw a 3.6% rise, bolstered the personal goods sector. Retail sales unexpectedly climbed by 0.3% in September, contrary to an anticipated drop. The sterling increased by 0.4%, reflecting the strong data. However, consumer stocks fell, with Unilever and British American Tobacco experiencing notable declines.

(With inputs from agencies.)