FTSE Pares Early Gains, Up Marginally In Cautious Trade

(RTTNews) - U.K. stocks moved higher Friday morning, reacting to data showing a notable rise in retail sales, and survey showing strong consumer confidence. However, stocks pared gains subsequently in cautious trade and the market was up just marginally a little past noon.

The benchmark FTSE 100 was up 11.09 points or 0.13% at 8,750.35 nearly half-an-hour past noon. The index had advanced to 8,779.55 earlier in the session.

Anglo American Plc is up 4.2% and EasyJet is gaining 4%. Melrose Industries, IAG, Endeavour Mining, 3i Group, Convatec Group, Antofagasta, Glencore, WPP, GSK, Whitbread and Fresnillo are up 1 to 2%.

Shares of investment platform AJ Bell Plc are up 7.5% after the company posted a 12% year-over-year rise in half-yearly profit before tax and raised its FY 25 guidance.

Games Workshop is declining 4.8%. Marks & Spencer, Beazley, Prudential and Hiscox are down 2 to 3%.

Diageo, JD Sports Fashion, Centrica, Severn Trent, Diploma and Weir Group are lower by 1 to 1.6%.

On the economic front, UK retail sales rebounded more than expected in April as good weather boosted food store sales, official data showed on Friday.

A monthly survey today showed that British consumer confidence strengthened in May on hopes of easing trade tensions and the interest rate reduction by the Bank of England.

Data from the Office for National Statistics showed retail sales grew 1.2% on a monthly basis in April, following a revised 0.1% rise in March. Sales were expected to climb only 0.3%.

The four consecutive monthly rises in retail sales led to a 1.8% increase in the three months to April period compared to the previous three months. Sales, thus, marked the biggest three-monthly rise since mid-2021.

Moreover, on a yearly basis, sales volume increased 2.6% in the three months to April, posting the largest growth since March 2022.

In April, retail sales, excluding auto fuel, grew 1.3 percent month-on-month, faster than March's 0.2 percent in March. The rate was also better than the forecast of 0.3%.

Year-on-year, retail sales growth accelerated more-than-expected to 5% from 1.9% in March. Sales were forecast to grow 4.5%.

The GfK consumer confidence index rose to -20 in May from -23 in April, survey results showed Friday. All five key indicators improved in May, led by two forward-looking findings.