London close: FTSE finishes on the front foot as investors weigh earnings and data

The FTSE 100 picked up steam to close on a positive note after a mixed day of corporate reports and economic data.

In Europe, German retail sales rose 5.1% in June, beating expectations for a 4% increase. Compared to a month ago, sales dropped 2.3%, ahead of forecasts for a 0.3% gain.

Eurozone inflation held steady in July as expected by analysts, as falling energy prices were offset by rises in industrial goods. The consumer price index remained at 0.2%, according to the flash estimate from the EU’s statistics agency Eurostat.

Meanwhile, Greece remained in focus as talks between the country and the European Union and International Monetary Fund over a third bailout began.

The IMF reiterated that it would not disburse any Greek aid before it sees evidence of concrete reforms and a granting of debt relief.

In the US, the Chicago PMI rose to 54.7 in July from 49.4 a month earlier, moving above the 50 level that signals an expansion in manufacturing activity and beating expectations for a reading of 50.8.

The University of Michigan’s index on US consumer confidence was revised lower to 93.1 in July from an earlier estimate 93.3, according to a final reading. Analysts had expected a reading of 94.

In corporate news, Lloyds Banking Group declined as the lender reported its first half results and set aside an extra £1.4bn provision for PPI mis-selling, which was higher than analysts expected.

ITV gained as US media giant Liberty Global upped its stake in the broadcaster to just under 10%.

Cruise operator Carnival sailed to the top of the leader-board mid-afternoon on a gust of positive sentiment from across the Atlantic. US peer Royal Caribbean posted second-quarter profits that were stronger than expected and raised its outlook for the full year. Also carried on the tailwinds of this news was London-listed TUI.

In the oil and gas sector, BG Group rallied after posting a slump in second-quarter earnings that were better than analysts had forecast and reporting record oil and gas output.

Elsewhere in the resources space, Chilean miner Antofagasta saw its shares fall after it announced that it had agreed to a $1.01bn deal to acquire a 50% interest in the Zaldivar copper mine from Barrick Gold. The immediately earnings-enhancing deal will be funded from the company balance sheet and consists of $980m upon closing and five annual payments of $5m per year, starting in 2016.

Royal Bank of Scotland declined on news the government is set to launch the first sale of its shares since the lender’s £46bn taxpayer-funded rescue nearly seven years ago, marking the beginning of the bank’s return to private ownership. Bankers have been sounding out investors for the past week about a sale of RBS stock that could begin in the next few days.