FTSE 100 closes at record high, boosted by financials

FTSE 100, FTSE 250 mark biggest weekly gains in six months British retail sales unexpectedly rise NatWest hits near two decade high after Q3 results US inflation comes in less than expected (Updates with market close) Oct 24 (Reuters) - Britain’s FTSE 100 closed at a record high on Friday, capping a strong week for London equities, as financial stocks gained following upbeat results from NatWest and signs of cooling inflation pressures in the United States. The blue-chip FTSE 100 (.FTSE) finished 0.7% higher at 9,645.62 points, while the mid-cap FTSE 250 (.FTMC) gained 0.75% to end at 22,529.02 - a level not seen since early 2022. The internationally-focused FTSE 100 also notched up its biggest weekly rise in over six months as investors globally cheered U.S. data showing consumer prices rose less than expected in September, firming expectations for an interest cut by the U.S. Federal Reserve when it meets next week. Markets were also hopeful that a meeting between U.S. President Donald Trump and Chinese President Xi Jinping next week could soothe trade tensions between the two economic powers. It has also been a good week for domestically-focused companies, with the mid-cap index also marking its steepest weekly rise in over six months after steady UK inflation figures earlier this week boosted expectations that the Bank of England will cut interest rates by 25 basis points in December. Corporate earnings are in full swing. NatWest (NWG.L) gained 4.9% to touch its highest since 2008 after the bank reported a 30% rise in third-quarter profit and upgraded its 2025 performance target. The broader banks index (.FTNMX301010) gained 1.4% and was among the top sectoral performers. WH Smith (SMWH.L) rose 4.2%, among the best FTSE 250 performers, after brokerage Peel Hunt upgraded the travel retailer to “buy” from “hold”. London Stock Exchange Group (LSEG.L) rose 4.8% after at least three brokerages raised target prices following upbeat third-quarter results on Thursday. Data on Friday also showed that retail sales unexpectedly rose for a fourth straight month, led by tech and jewellery sales. The broader retail sector (.FTNMX404010) added 1.4%.