The British stock market, on course next week for its fourth weekly gain in a row, will shrug off record oil prices and look instead to retail sector news to boost equities, analysts said.
On Friday, London's FTSE 100 index of leading shares ended at 5,888.9 points - up 0.95 percent or 55.5 points from a week earlier.
The FTSE has won 5.21 percent in value over the past three weeks. Next week, investors will focus on the retail sector amid trading updates from Britain's food-to-clothing group Marks and Spencer, peer GUS and luxury goods retailer Burberry.
On the economic front, the Office for National Statistics was due to release producer price numbers and unemployment data.
ABN Amro analyst Ian Richards argued that the world economy would weather the recent record run in oil prices and the surge in energy costs would be absorbed by European companies.
"The supply and demand dynamics of the oil market do not suggest that oil prices are likely to weaken materially during 2006," Richards said.
"Momentum in the global economy is strong and activity should be robust over the next year. This should underpin oil demand."
Crude futures are surging to historic highs on strong global demand and heightened geopolitical concerns, particularly over Iran and North Korea.
"Although growth rates may slow, the global economy should sustain at least trend growth through 2007," Richards added.
"This macro backdrop should support returns across the European corporate sector."
Global stock markets have been hit in recent weeks over fears of rising interest rates to keep inflation in check. On June 13 the FTSE had struck 5,467.40 points, which marked the lowest point since December 1, 2005.
Two months earlier, on April 21, the FTSE had closed at 6,132.70 points, its highest finish since February 15, 2001 as energy and mining groups were lifted by then-record high commodity prices.
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