The FTSE 100 closed at its highest level for more than a month as it continued a strong end to the week.
Positive UK retail sales data – which showed a 3.4% increase in January to bounce back from a decline a month earlier – helped to drive positive sentiment among traders.
Strong profits by banking giant NatWest also led to a share rise which helped to drive the FTSE to gains during the session.
London’s top index moved 1.5%, or 114.18 points, higher to finish at 7,711.71.
“The FTSE 100 outperforming its peers in a rising market is a rare phenomenon,” said Axel Rudolph, senior market analyst at IG.
“The UK blue chip index has risen by close to 3% in the past three days and today shrugged off US producer prices rising the most in five months which curtailed the bull run in other markets on both sides of the pond.”
Other European markets made shallower increases but nevertheless drew positivity from the UK’s economic news.
The German Dax index was up 0.42% at the close and the Cac 40 closed up 0.32%, with both rising to record highs during the day.
Stateside, the main markets edged a touch lower on the opening bell after US producer prices increased by more than expected in January.
In currency, sterling was a touch lower against a strong dollar, with continued inflation in the States driving expectations interest rates will remain elevated.
The pound was down 0.1% at 1.258 US dollars and was 0.08% lower at 1.168 euro at market close in London.
In company news, NatWest was one of the day’s top performers after the bank reported its highest yearly profit for 16 years, surpassing market forecasts.
The group reported an operating pre-tax profit of £6.2 billion for 2023 as it also revealed Paul Thwaite has taken over as chief executive, having previously held the role on an interim basis after predecessor Dame Alison Rose left in the aftermath of the debanking scandal last year.
Shares in the company were up 15.2p to 229.5p at the close.
Centrica finished higher on Friday after analysts at Citi suggested they think the energy firm could provide more returns for shareholders this year on the back of a strong period of cash generation.
Shares rose by 2.9p to 139.1p, a day after its British Gas arm recorded soaring profits.
Power solutions business XP Power tumbled in value after it said it expects profits to fall below expectations due to a roughly £4 billion impairment. Shares were down 530p at 968p.
Warehouse investment specialist Segro finished 16.2p higher at 849.4p after its pre-tax losses narrowed sharply amid improved occupier demand.
Meanwhile, the price of a barrel of Brent crude oil was up by 0.51% to 83.28 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were NatWest Group, up 15.2p to 229.5p, Antofagasta, up 95.5p to 1,785p, Lloyds, up 1.62p to 43.2p, Weir Group, up 69.5p to 1,870.5p, and IMI, up 65p to 1,769p.
The biggest fallers on the FTSE 100 were Airtel Africa, down 3.2p to 96.3p, Vodafone, down 0.94p to 65.63p, Entain, down 5.4p to 933.4p, Ocado, down 3p to 536p, and IAG, down 0.75p to 145.65p.