FTSE 100 Rises 0.32% While DAX Jumps 0.83% as Retail Sales Lift European Markets

The FTSE 100 climbed 0.33% Friday afternoon, reaching 10,673.99 points. Germany’s DAX outperformed, rising 0.83% to 24,969.21 points. Both indices reversed a weaker morning open to trade higher by midday. UK retail sales volumes jumped 1.0% in June, smashing forecasts for a 0.3% decline. That surprise beat helped the FTSE 100 recover from Thursday’s 0.73% drop. 

Stronger-than-expected Eurozone business activity data supported the DAX’s rally too. Middle East tensions and oil prices above $100 still capped broader gains. The FTSE 100’s gain adds 34.82 points to Thursday’s close.

FTSE 100’s Recovery From a Weak Open

The FTSE 100 (^FTSE) had been forecast to open lower Friday morning. Futures pointed to a decline of roughly 0.2% to 0.3%. Instead, the index climbed steadily through the session to 10,673.99. That marked a gain of 34.82 points by early afternoon trading.

FTSE 100’s key levels through Friday’s session:

• The index opened lower, tracking Thursday’s 77.80-point decline.
• FTSE 100 reversed course to trade up 0.33% by midday.
• Thursday’s close stood at 10,639.17, down 0.73% on the day.
• The index remains within its 52-week range of 9,023.27 to 10,934.94.

UK Retail Sales Delivered a Major Upside Surprise

UK retail sales volumes rose 1.0% month-over-month in June, the ONS reported. Economists in a Reuters poll had forecast a 0.3% decline instead. Annual sales volumes climbed 4.2%, far above the 2.3% consensus estimate. May’s figure was also revised higher, showing 1.2% monthly growth.

Why Warm Weather and the World Cup Boosted Spending

Retailers credited the summer heatwave and the ongoing World Cup for June’s surge. Shoppers bought more air conditioning units, fans, and clothing during the hot spell. Capital Economics’ Ruth Gregory said spending held up despite rising energy costs. She cautioned this resilience may not last as household incomes face pressure.

Retailers reporting on June’s demand patterns:

• Sainsbury’s said third-quarter trading improved, helped by the heatwave.
• Currys reported “very solid” trading, driven by World Cup television demand.
• Frasers, owner of Sports Direct, warned of tough trading conditions.
• Frasers also cited industry-wide excess inventory weighing on its outlook.

Germany’s DAX Rode a Broader Eurozone PMI Beat

Germany and the Eurozone both posted stronger-than-expected July PMI readings Friday. That data pointed to unexpectedly resilient business activity across the currency bloc. The Euro held gains near 1.1400 against the dollar following the release. Germany’s DAX responded with its 0.83% gain to 24,969.21 points.

Eurozone July flash services PMI 51.6 vs 49.8 expectedhttps://t.co/OR0DipkJZ9

— investingLive (@investingLive_) July 24, 2026

Currency and commodity moves accompanying Friday’s rally:

• The British pound clung to gains above 1.3300 against the dollar.
• Gold rose back above $4,050 per ounce during European trading hours.
• Brent crude remained elevated above $100 a barrel, capping broader gains.
• UK inflation had slowed in June as fuel and food prices eased.

Middle East Risk Still Looms Over Both Indices

Thursday’s selloff followed claims that Houthi forces attacked oil tankers in the Red Sea. That escalation pushed Brent crude above $100 a barrel for the first time in weeks. Friday’s rebound shows investors weighing strong data against this ongoing geopolitical risk. Energy stocks like Shell and BP remain sensitive to any further escalation.

Final Thoughts: What Analysts Are Watching Next

Analysts see Friday’s rally as evidence that strong data can offset geopolitical anxiety. The retail sales beat gave the Bank of England less reason to consider near-term cuts. DAX’s outperformance reflects renewed confidence in Eurozone business activity this month. Still, Brent crude above $100 keeps inflation risk firmly on the table. Next week’s Middle East headlines will likely determine whether this rebound holds.

Disclaimer:

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