By Julien Ponthus
LONDON (Reuters) - UK shares lagged their European peers on a trade war relief rally on Thursday, after better-than-expected UK retail data boosted the pound which acts as an accounting drag on their foreign revenues.
At 0914 GMT, the FTSE 100
While analysts had expected a strong spring and summer to come to an end, British shoppers kept up their spending spree in August, despite the end of the World Cup, and showed no sign that the approach of Brexit was making them cautious. [nUKLKKEE51]
Worries about the future of the UK retail industry and continued political uncertainty remain however.
"With incomes still under pressure, and consumer caution only likely to build as 'no deal' Brexit warnings multiply, we think the high street faces a challenging autumn", ING economists said in a note.
A $3.2 billion share buyback program from Rio Tinto
Basic materials and financials were the main sectors contributing to the FTSE's rise.
Shares in Diageo
"The year has started well and performance is in line with expectations", Jefferies commented about the world's largest distributor of spirits.
There were sharper moves on small and mid-sized companies.
Lower levels of market volatility hurt quarterly revenues at trading platform IG Group
British construction and services company Kier Group
(Julien Ponthus; Editing by Jon Boyle)