The UK 10-year gilt yield slipped to 5.07%, easing from Thursday’s two-month high as oil prices retreated, following a brief move by Brent crude above $100 per barrel. Investors also weighed a new round of economic data.
UK retail sales rose 1% in June, defying expectations for a 0.3% decline, with warmer weather and increased spending during the football World Cup providing support. Consumer confidence climbed to a six-month high in July, and the Bank of England’s Decision Maker Panel survey indicated that inflation expectations are continuing to ease. At the same time, the S&P Global PMI showed that UK business activity has returned to growth, beating analyst forecasts.
On the trade front, the United States announced new tariffs of 10% to 12.5% on dozens of countries, including the UK and the EU. The UK government stated that the measures would not adversely affect British businesses, stressing that the existing UK–US trade agreement remains in place and continues to offer improved market access for exports such as whisky and medical technology.