The FTSE 100 rose 0.4% to 10,490 on Friday, its highest level since April 21, positioning the index for a 2.8% weekly gain as investors grew more optimistic about progress in US-Iran peace negotiations. US Senator Marco Rubio cited "some good signs" in the talks, though Tehran’s uranium stockpile and control over the Strait of Hormuz remain key obstacles. Meanwhile, a batch of fresh UK economic data painted a mixed picture: April retail sales slumped 1.3%, nearly double the forecasted 0.6% decline, driven by a sharp drop in fuel sales amid rising prices, while consumer confidence in May showed a slight improvement, beating expectations. The UK’s budget deficit widened to GBP 24.3 billion, exceeding the GBP 20.9 billion estimate. Together with earlier reports of weak inflation, a softening jobs market, and May PMI signaling private sector contraction, the figures prompted traders to scale back bets on Bank of England interest rate hikes.