FTSE 100 and European Stocks Rise on Retail Sales Data
The FTSE 100 and European stocks experienced gains on Friday following the announcement that UK retail sales volumes have increased for a fourth consecutive month. According to new data from the Office for National Statistics (ONS), there was a 0.5% uplift in September, and a 1.5% increase year-over-year. This comes as a surprise, as economists had anticipated a drop of 0.2% for the month.
Growth in Non-Food Retail Sales
The ONS highlighted significant growth in sales at non-food retailers, particularly in technology segments that benefited from the releases of Nintendo’s highly anticipated Switch 2 console and Apple’s iPhone 17. Additionally, online jewelry stores noted a surge in demand for gold, which has seen prices reaching record highs this year.
September Sales Volumes
Despite these positive trends, overall sales volumes remain 1.6% lower than pre-pandemic levels from February 2020. However, September marked the highest sales figures since 2022. In the online retail space, spending from July to September rose 3.5% compared to the previous quarter and 5% year-over-year.
ONS Insight on Retail Sales
Hannah Finselbach, a senior statistician at the ONS, commented on the results, stating that retail sales have shown robust growth in the latest quarter. She noted that while food stores barely grew, favorable weather conditions in July and August led to increased clothing sales, along with strong performance in online retailing.
International Trade Relations Update
On another note, US-Canada trade relations have come under strain as former President Donald Trump announced the termination of all trade negotiations following a controversial advertisement that criticized US tariffs. Trump accused Canada of engaging in “egregious behavior” aimed at impacting US legal decisions.
Market Overview
As of early afternoon trading, London’s benchmark index remained stable. Meanwhile, Germany’s DAX was relatively unchanged, while France’s CAC dropped by 0.5%. The pan-European STOXX 600 index was also noted to be down 0.2%, following a record high achieved the day before. In the US, positive trends were observed with S&P 500, Dow, and Nasdaq futures all indicating a favorable start.
Pound Weakens Against the Dollar
The British pound experienced a slight decline of 0.1% against the US dollar, trading at 1.3314. This shift reflects ongoing fluctuations as economic indicators continue to influence market sentiments.
