European equities commenced trading on a positive note Friday, following two consecutive sessions of gains that have propelled them closer to recent peak levels.
The Stoxx 600 index kicked off the day with a 0.5% uptick at 8:30 a.m. in London, buoyed notably by a 1.7% surge in mining stocks.
Notably, U.K. retail sales exceeded expectations, offering a much-needed glimmer of hope for an economy recently confirmed to be in a technical recession, as indicated by Thursday’s data.
According to the Office for National Statistics, sales climbed by 3.4% month on month, surpassing the 1.5% growth anticipated in a Reuters survey of economists.
This marked the most substantial monthly increase since April 2021 and comes on the heels of a record decline in December, which dealt a severe blow to retailers during the crucial holiday period.
The earnings stream slowed down on Friday, although NatWest bank reported a 20% surge in full-year pre-tax profit, surpassing expectations, despite a decline in its net interest margin.
Initially, shares opened on a lower note before bouncing back to register a 2.5% gain.
Across the Asia-Pacific region, stocks exhibited broad gains, with Japan’s Nikkei 225 hitting a fresh 34-year high. Investors are banking on the weak economy to prompt the central bank to maintain its ultra-loose monetary policy.
Meanwhile, in the U.S., stock futures displayed a mixed outlook following the S&P 500’s closure at a record high. Investors await U.S. producer price data scheduled for release on Friday.
