London stocks were in the black by midday on Friday as investors digested encouraging UK GDP data.
The FTSE 100 was up 0.6% at 7,133.42, on track for its best week in a month.
Sophie Griffiths, market analyst at Oanda, said: “European stocks are pushing higher today, hitting fresh all-time highs after a strong close on Wall Street. Bond yields are moving lower as investors digest the largest rise in core inflation in 30 years.
“Yes, that’s right! Bond yields are falling despite US CPI coming in higher than forecast at 5% in May.”
Oh home shores, figures released earlier by the Office for National Statistics showed the economy grew in April at its fastest monthly rate since July 2020 as lockdown restrictions eased. The economy expanded by 2.3% following 2.1% growth in March and versus expectations for 2.5% growth.
On the year, GDP was up 27.6%. Nevertheless, the UK economy is still 3.7% smaller than it was in February 2020, before the pandemic and related restrictions kicked in.
Retail sales volumes grew 9.2% on the month in April after all non-essential stores reopened from 12 April in England and Wales and from 26 April in Scotland. Education output was the second main contributor to services growth, according to the ONS, up 11.2% as more pupils returned to onsite lessons in April.
ONS deputy national statistician for Economic Statistics, Jonathan Athow, said: “Strong growth in retail spending, increased car and caravan purchases, schools being open for the full month and the beginning of the reopening of hospitality all boosted the economy in April.”
Oanda’s Griffiths said: “The successful vaccination programme has helped the economy bounce back from its deepest contraction in 300 years last year. With households expected to splurge the savings amassed over that time, and businesses gearing up for additional investment, the outlook is certainly bright.
“There is, of course, the complication of rising cases of Covid-19, which could delay the final stage of reopening. For now, a return to pre-Covid output in Q4 looks to be very much on track.”
In equity markets, asset management services provider Sanne surged as it said it was in talks with Cinven after the buyout firm made a new 875p-a-share offer for the firm. Sanne had previously rejected a £1.35bn proposal as too low. Cinven now has until July 9 to make a firm offer.
Domino’s Pizza lost ground after it emerged that chief financial officer Neil Smith was leaving the group to become finance director of pub and hotels company Fuller, Smith & Turner.
Equipment rental firm Ashtead was knocked lower by a downgrade to ‘hold’ from ‘buy’ at Deutsche Bank.
Market Movers
FTSE 100 (UKX) 7,133.42 0.64%
FTSE 250 (MCX) 22,712.69 0.46%
techMARK (TASX) 4,446.67 0.41%
FTSE 100 – Risers
Halma (HLMA) 2,778.00p 3.66%
Glencore (GLEN) 329.65p 3.05%
Evraz (EVR) 641.00p 2.86%
Smurfit Kappa Group (CDI) (SKG) 3,904.00p 2.71%
Antofagasta (ANTO) 1,536.00p 2.61%
Melrose Industries (MRO) 167.65p 2.29%
Auto Trader Group (AUTO) 628.80p 2.14%
Bunzl (BNZL) 2,306.00p 2.13%
Fresnillo (FRES) 867.80p 2.09%
Intertek Group (ITRK) 5,408.00p 2.08%
FTSE 100 – Fallers
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,465.00p -2.42%
BT Group (BT.A) 190.90p -2.18%
Ashtead Group (AHT) 4,999.00p -1.36%
Standard Chartered (STAN) 491.60p -1.19%
Informa (INF) 552.40p -0.97%
Coca-Cola HBC AG (CDI) (CCH) 2,635.00p -0.68%
Imperial Brands (IMB) 1,614.50p -0.65%
HSBC Holdings (HSBA) 433.85p -0.53%
Ferguson (FERG) 9,530.00p -0.48%
Unilever (ULVR) 4,264.50p -0.37%
FTSE 250 – Risers
Sanne Group (SNN) 856.00p 10.88%
Allianz Technology Trust (ATT) 274.00p 3.01%
Pantheon International (PIN) 2,650.00p 2.91%
RHI Magnesita N.V. (DI) (RHIM) 4,434.00p 2.88%
Oxford Biomedica (OXB) 1,242.00p 2.81%
Hill & Smith Holdings (HILS) 1,466.00p 2.81%
Paragon Banking Group (PAG) 559.50p 2.66%
Centamin (DI) (CEY) 113.50p 2.53%
Trainline (TRN) 263.60p 2.49%
Ferrexpo (FXPO) 460.80p 2.31%
FTSE 250 – Fallers
Aston Martin Lagonda Global Holdings (AML) 1,917.50p -2.57%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,465.00p -2.42%
Unite Group (UTG) 1,149.50p -2.17%
CMC Markets (CMCX) 487.50p -2.01%
Cineworld Group (CINE) 86.60p -1.97%
Workspace Group (WKP) 880.50p -1.84%
Provident Financial (PFG) 235.40p -1.75%
Domino’s Pizza Group (DOM) 384.00p -1.59%
GCP Student Living (DIGS) 174.60p -1.13%
LXI Reit (LXI) 143.60p -1.10%
