UK consumer demand remained subdued in July. According to the British Retail Consortium, total retail sales increased by 1.3% year over year, compared with growth of 2.5% in July 2025. Food sales rose by 3.8%, versus 3.9% a year earlier, while non-food sales declined by 0.7%, compared with growth of 1.4% in July 2025.
The BRC said food sales benefited from the final week of the football World Cup, while unusually hot weather reduced footfall and weighed on non-food spending. Online non-food sales, however, accelerated from growth of 0.3% in July 2025 to 1.3% this year, while the online penetration rate increased from 35.4% to 35.9%.
UK government bond yields also remain elevated. Market quotes at the time of writing placed the yield on one-year gilts around 4.12%, while the benchmark 10-year yield was close to 5.00%. Yields on longer maturities were around 5.64% for 20-year gilts and 5.73% for 30-year securities. The Bank of England publishes estimated UK government bond yield curves on a daily basis.
Among the stronger FTSE 100 constituents earlier in the session were Fresnillo Plc (+3.46%), Glencore Plc (+2.10%), Spirax Group Plc (+2.00%), Metlen Energy & Metals SA (+1.58%) and BP Plc (+1.43%). These figures represent an intraday snapshot and may differ from closing prices.
The largest declines at the same point in the session included Coca-Cola HBC AG (–4.76%), Imperial Brands Plc (–4.55%), British American Tobacco Plc (–4.37%), Vodafone Group Plc (–3.07%) and The Berkeley Group Holdings Plc (–2.54%).
Support and Resistance Levels
On the daily chart, the FTSE 100 is approaching the resistance line of a broader ascending channel with approximate boundaries at 11,500.0 and 10,600.0.
Technical indicators continue to provide an unstable bullish signal: the spread between the moving averages of the Alligator indicator is gradually widening, while the Awesome Oscillator histogram is forming corrective bars in positive territory.
Resistance levels: 10,970.0, 11,300.0.
Support levels: 10,740.0, 10,390.0.
FTSE 100 Trading Scenarios and Forecast
Long positions may be considered after the index rises and consolidates above 10,970.0, with a target at 11,300.0 and a stop-loss at 10,800.0. Time horizon: seven days or more.
Short positions may be considered after the index declines and consolidates below 10,740.0, with a target at 10,390.0 and a stop-loss at 10,950.0.
