Stock prices in London opened higher on Friday, following US GDP data that one analyst said ‘tasted exactly how investors love it’, as well as promising UK retail footfall figures.
The FTSE 100 index opened up 28.77 points, or 0.3%, at 8,409.25. The FTSE 250 was up 73.24 points, or 0.4%, at 21,104.32, and the AIM All-Share was up 0.36 points at 772.85.
The Cboe UK 100 was up 0.3% at 840.62, the Cboe UK 250 was up 0.3% at 18,585.32, and the Cboe Small Companies was up fractionally at 16,917.27.
According to the latest British Retail Consortium-Sensormatic tracker, UK retail footfall weakened 0.4% on-year in August, abating from a 3.3% slide in July.
‘As violent disorder erupted across the country earlier in the month, footfall was severely impacted as many people stayed away from shopping destinations. Retail parks saw footfall levels rise in the week following the riots as some continued to avoid high streets and shopping centres,’ BRC Chief Executive Helen Dickinson commented.
The figures followed US GDP, which came out late on Thursday.
According to the Bureau of Economic Analysis, real US GDP increased at an annual rate of 3.0% in the second quarter of 2024, beating the first estimate of 2.8%. In the first quarter, real GDP increased 1.4%.
‘The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and non-residential fixed investment,’ BEA explained.
‘All in all, the US economy rebounded in the Q2 but the rebound didn’t increase price pressures. In plain English, the data tasted exactly how investors love it – with the additional sweet topping – for the Fed rate cut expectations – that it has slowed in the Q3 but slowed from a higher mark,’ said Swissquote Bank’s Ipek Ozkardeskaya.
Next up is the latest core PCE index, the US Federal Reserve’s preferred gauge of inflation.
Ozkardeskaya added: ‘A stronger-than-expected read could lead to a further USD recovery. But even in that case, the Fed doves are more interested in jobs data than inflation figures. What would really change the game is… a strong jobs data from the US next week.’
In European equities on Friday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was down 0.1%.
The pound was quoted at $1.3177 early on Friday in London, up against $1.3164 at the equities close on Thursday. The euro stood at $1.1080, higher against $1.1077. Against the yen, the dollar was trading at JP¥144.88, down compared to JP¥145.23.
In the FTSE 250, Computacenter was up 0.4%.
The firm has named Adam Walker as the newest independent non-executive director on the board, as well as chair of the audit committee, and member of the nomination and remuneration committees, with immediate effect.
On September 30, Walker - who is currently a non-executive director at Currys, will also become senior independent director of the company. He has previously held executive roles at IHS Holding, GKN, and National Express Group.
Elsewhere, Permanent TSB Group gained 2.7%, after announcing on Thursday that CFO Nicola O’Brien is to step down. In accordance with the bank’s existing governance arrangements, O’Brien will step down from the board with immediate effect.
Chief Executive Officer Eamonn Crowley said: ‘Nicola has played an important role in supporting the bank on its journey to grow and diversify its business. I wish to acknowledge the commitment she has shown to the bank throughout her tenure and wish her every success in her future career.’
In Asia on Friday, the Nikkei 225 index in Tokyo was 0.7%. In China, the Shanghai Composite was up 0.7%, while the Hang Seng index in Hong Kong was up 1.4%. The S&P/ASX 200 in Sydney closed up 0.6%.
According to Bureau of Statistics, Japan’s unemployment rate rose to 2.7% in July from 2.5% in June, higher than FXStreet-cited expectations of a 2.5% rise. The number of unemployed people came to 1.9 million, representing an annual increase of 50,000 people. The number of unemployed people has grown four months in a row.
Separate data showed that the headline Tokyo consumer price index for August rose 2.6%, higher than a 2.2% rise in July. The Tokyo CPI excluding fresh food and energy increased 1.6%, compared to 1.5% the previous month, while the CPI excluding fresh food rose 2.4% in August, above market consensus of 2.2%.
Meanwhile, the rebound in industrial production was weaker than expected, with new data showing a 2.8% rise in July, which compared to a 4.2% fall in July, but was lower than FXStreet-cited estimates of a 3.3% rise.
In the US on Friday Wall Street ended predominantly lower, with the Dow Jones Industrial Average up 0.6%, the S&P 500 down fractionally, and the Nasdaq Composite down 0.2%.
Kamala Harris said Americans are ready to turn the page on Donald Trump, as she reached out to centrist voters in her first interview since her nomination as the Democratic Party’s presidential candidate.
Meanwhile, former president Donald Trump asked a federal court late on Thursday to intervene in his New York hush money criminal case, seeking a pathway to overturn his felony conviction and indefinitely delay his sentencing next month.
Lawyers for the current Republican nominee asked the federal court in Manhattan to seize the case from the state court where it was tried, arguing that the historic prosecution violated his constitutional rights and ran afoul of the US Supreme Court’s recent presidential immunity ruling.
Gold was quoted at $2,520.60 an ounce early Friday, higher than $2,519.68 on Thursday. Brent oil was trading at $79.26 a barrel early on Friday, higher against $78.74 late Thursday.
Still to come on Friday’s economic calendar, there is a handful of data from Europe, including CPI, GDP, and PPI from France, unemployment from Germany, and both CPI and unemployment from the eurozone.
Later in the day, there are several more releases from the US including personal consumption expenditures, Chicago PMI, and the Michigan consumer sentiment index.
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