UK's exports-heavy FTSE 100 rose on Friday as the sterling weakened and oil stocks jumped, while insurer Beazley topped the mid-cap index following a strong annual forecast.

The FTSE 100 advanced 0.3% in volatile trade and was on track to end the week 1.8% higher, its best weekly performance in a month.

Oil majors BP and Shell climbed 0.8% and 0.5%, respectively, tracking a recovery in crude prices.

A weakness in sterling supported the FTSE 100 index, with Unilever, Reckitt Benckiser and British American Tobacco among the biggest boosts.

Banks fell 0.9% on fears of a global economic slowdown, a day after Europe's central bank raised interest rates by a more-than-expected 50 basis points in its first hike in 11 years.

European banks, facing a potential economic storm and a rise in borrowing costs for the first time in more than a decade, are set to show their weak spots when they update investors on how their business has fared this year.

Retail sales edged down in June as drivers cut back on fuel amid record high prices. While shopping trend remained weak as households struggle with surging inflation, the drop was less than expected, data showed.

"The underlying trend is that the surge in prices is weighing on sales volumes ... a recession is just around the corner," said Paul Dales, chief UK economist at Capital Economics.

UK's economy is feeling the strain of inflation, which is on course to hit double digits. The Bank of England is expected to raise interest rates for a sixth time since December on Aug. 4, potentially adding to the drag on economic growth.

British consumers' confidence remained stuck at a record low this month, another survey showed on Friday.

The domestically focussed mid-cap index rose 0.2%, extending gains for a sixth straight session.

The index was on track to end the week 4.8% higher, outperforming the benchmark FTSE 100 and the pan-European STOXX 600 this week, helped by strong earnings.

Beazley jumped 8.9% to top the mid-cap index as the insurer raised its full-year profitability forecast on an increase in cyber risk premiums.

Aston Martin fell 10.7% as Jefferies cuts its price target after the luxury carmaker raised funds last week.

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi)