The FTSE 100 is up by 0.25% on Friday, or by 14.9 points, to 7,034.57, led by China-focused stocks. HSBC, Burberry and Prudential all have major operations in China and made solid gains as the week draws to a close.
The Chinese economy remains on the path to recovery, despite some hiccups along the way. Albeit below expectations, retail sales in China rose by 17.7% in April compared to the month before as the country continues on its path to recovery. While online sales of consumer goods jumped by 23.1% during the first four months of the year compared to the year before. Urban unemployment fell to 5.1% in April, down from 5.3% in March.
Burberry has previously posted strong results from mainland China despite facing a backlash from authorities over its accusations of abuses in Xinjiang.
Burberry said its full-price sales rose 63% in the last quarter driven by mainland China, Korea and the United States.
“UK stocks have spent much of the past week trading sideways with a lack of real catalysts to push them firmly in either an upwards or downwards direction and today’s modest move higher for the FTSE 100 is very much in that vein,” says AJ Bell investment director Russ Mould.
“While the pound is at its highest level in three years against the dollar at $1.42, while the FTSE 250 and FTSE Small Cap indices, which have more of a domestic focus, have outperformed both the more globally-orientated FTSE 100 and some other major stock markets around the world, notably the technology-heavy Nasdaq index which had previously been on a supercharged run,” Mould added.
Whether this trend can be sustained may come down to the battle between vaccines and variants and if the UK can stick to a road map which would see nearly all coronavirus restrictions lifted in a little over three weeks’ time.
FTSE 100 Top Movers
Barratt Developments (2.68%), Taylor Wimpey (2.53%) and SSE (2.40%) are heading up the FTSE 100 at the midway stage of the morning session.
At the other end, Polymetal International (-2.77%), Antofagasta (-2.47%) and Sage Group (-1.8%), are keeping the index in check.