Friday, February 16, 2024 8:46am
London markets rose on Friday morning as strong retail sales boosted expectations that Britain could soon emerge from the doldrums of recession.
The FTSE 100 index rose 0.76% to trade at 7,655.49, while the FTSE 250 index, which is more closely tracked by the health of the domestic economy, rose 0.59% to trade at 19,210.22.
“Better-than-expected retail sales have boosted market sentiment,” said Sophie Land-Yates, principal equity analyst at Hargreaves Lansdown.
Retail sales rose 3.4% in January, compared with the 1.5% increase expected by economists. Black Friday discounts pushed the Christmas sales season forward to November, offsetting a significant drop in December.
Many economists said the figures suggested Britain may already be emerging from recession. Lund Yates said the numbers suggested the economy was “ready to slowly emerge from hibernation”.
Martin Beck, chief economic advisor at EY Item Club, said: “Lower inflation means real wages will continue to rise, and the prospect of lower utility bills will boost household purchasing power.”
In London, mining giants including Anglo American, Glencore, Antofagasta and Rio Tinto pushed the FTSE 100 index higher, all rising around 2%.
On the FTSE 100 index, NatWest beat expectations in the final quarter of last year, helping the bank post its best numbers since the financial crisis. The company’s stock rose 0.8%.
The scandal-hit lender reported operating profits of £6.2bn in 2023, a 20% increase on 2022. The high street financier also confirmed that Paul Thwaites will permanently replace Dame Alison Rose as boss.
Rose left the bank under a cloud after Farage’s debankment scandal.
Seguro shares rose 1.9%. The London-listed real estate investment trust announced this morning that rental income from its portfolio could rise by more than 50% over the next three years.