UK shares advanced on Friday, driven by base metal miners, with the indexes headed for weekly gains as investors remained optimistic about potential interest rate cuts from the Bank of England after recent economic data.

The blue-chip FTSE 100 was up 0.8% and hit an over one-week high, as of 0821 GMT, while the mid-cap FTSE 250 added 0.5%.

Both indexes were on course to post gains for the week, breaking a two-session losing streak.

Industrial metal miners climbed 2.0%, tracking the increase in base metal prices, driven by expectations of rate cuts from the U.S. Federal Reserve.

Friday's data showed that retail sales in the UK surged by a stronger-than-expected 3.4% in January, yet it did little to dampen market optimism.

Domestic economic data in the week, indicating softer inflation and the economy slipping into recession, has bolstered market sentiment amid hopes that the BoE would cut interest rates from its nearly 16-year high levels.

Money markets are pricing in an about 72 basis point cut from the central bank this year.

Among single stocks, Segro advanced 2.2% after the warehousing group cited optimistic prospects for its investment market business in 2024 and posted a better-than-expected annual profit. (Reporting by Shristi Achar A in Bengaluru; Editing by Dhanya Ann Thoppil)