Sharecast - At 0830 GMT, the FTSE 100 was down 1.1% at 7,420.27.
Data released earlier by the Office for National Statistics showed that retail sales rose more than expected in February.
Retail sales volumes were estimated to have grown by 1.2% month-to-month, following upwardly-revised growth of 0.9% in January.
It is the largest monthly increase since October 2022, which benefited from the additional bank holiday for the Queen’s state funeral, and returns sales volumes to February 2020, pre-pandemic. Analysts had been expected a rise of just 0.2%.
Year-on-year, sales volumes were down 3.5%, and off 0.3% in the three months to February when compared to the previous quarter.
Driving February’s increase were non-food sales, up 2.4% compared to January’s 1.0% rise. Within that, sales in department stores rose 5.5% while clothing shops saw a 2.9% jump. The ONS attributed growth in both sub-sectors to strong sales at discount stores.
There was also strong growth in second-hand goods stores, the ONS noted, such as auction houses and charity shops.
Food sales volumes rose 0.9% compared to 0.1% in January. The ONS said there was some anecdotal evidence of reduced spending in restaurants and on takeaways, because of cost of living pressures.
Separately, a survey from GfK showed that consumer confidence nudged higher in March despite ongoing cost of living pressures.
The latest GfK consumer confidence index was -36, up two points on February and the third consecutive month it has strengthened.
Within that, expectations for the general economic situation over the next 12 months rose three points to -40, while the major purchase index increased by four to -33.
However, expectations for households’ personal finance situation fell by three points to -21. It remains three points weaker than March 2022.
In equity markets, Barclays (LON:BARC), NatWest (LON:NWG), HSBC (LON:HSBA) and Lloyds (LON:LLOY) were in the red again amid lingering concerns over the banking sector.
Elsewhere, travel firm Tui tumbled after it announced a €1.8bn fund raising to help cut debt and reduce interest costs.
Pub chain JD Wetherspoon gained ground as it said sales for the last seven weeks were 14.9% higher than the same period last year as it swung to a half-year profit despite "ferocious" inflationary pressures. The company posted a pre-tax profit of £4.6m for the 26 weeks to January 29, compared to a £26.1m loss in 2022.
Smiths Group (LON:SMIN) rallied as it reported a jump in first-half profit and lifted its guidance for FY2023.
Market Movers
FTSE 100 (UKX) 7,420.27 -1.06%
FTSE 250 (MCX) 18,571.94 -0.84%
techMARK (TASX) 4,515.67 -0.66%
FTSE 100 - Risers
Smiths Group (SMIN) 1,740.00p 1.43%
Reckitt Benckiser Group (RKT) 6,008.00p 0.40%
British American Tobacco (LON:BATS) 2,834.00p 0.37%
BAE Systems (LON:BAES) (BA.) 975.80p 0.08%
Diageo (LON:DGE) 3,561.50p -0.04%
London Stock Exchange Group (LON:LSEG) 7,776.00p -0.05%
Pershing Square (NYSE:SQ) Holdings Ltd NPV (PSH) 2,795.00p -0.18%
Weir Group (LON:WEIR) 1,796.50p -0.19%
Bunzl (LON:BNZL) 3,040.00p -0.23%
Relx plc (REL) 2,577.00p -0.23%
FTSE 100 - Fallers
Barclays (BARC) 135.52p -3.05%
Ocado Group (LON:OCDO) 435.00p -2.77%
GSK (GSK) 1,398.40p -2.74%
3i Group (LON:III) 1,543.00p -2.56%
Prudential (LON:PRU) 1,040.00p -2.44%
NATWEST GROUP (NWG) 261.60p -2.42%
International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 136.22p -2.25%
CRH (CDI) (LON:CRH) 3,957.00p -2.25%
Rolls-Royce Holdings (LON:RR.) 144.04p -2.24%
Smurfit Kappa Group (CDI) (SKG) 2,859.00p -2.09%
FTSE 250 - Risers
Wetherspoon (J.D.) (JDW) 620.50p 6.80%
Bridgepoint Group (Reg S) (BPT) 213.00p 3.80%
Warehouse Reit (WHR) 98.50p 3.25%
Bytes Technology Group (BYIT) 394.60p 3.14%
Renishaw (LON:RSW) 4,138.00p 2.02%
Big Yellow Group (LON:BYG) 1,160.00p 1.93%
Pets at Home Group (PETS) 361.80p 1.40%
Sirius Real Estate Ltd. (SRE) 73.00p 1.39%
Hunting (LON:HTG) 241.00p 1.26%
Supermarket Income Reit (SUPR) 87.00p 1.16%
FTSE 250 - Fallers
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 1,301.00p -7.96%
Wizz Air Holdings (LON:WIZZ) 2,611.00p -4.32%
TBC Bank Group (TBCG) 2,150.00p -3.59%
Intermediate Capital Group (LON:ICP) 1,172.00p -3.58%
AJ Bell (AJB) 328.40p -3.53%
IWG (IWG) 146.10p -3.12%
Ninety One (N91) 176.00p -2.92%
Hammerson (HMSO) 22.05p -2.78%
Trainline (TRN) 261.80p -2.71%
Vistry Group (LON:VTYV) (VTY) 734.50p -2.52%
