25th Apr 2025 08:56
(Alliance News) - London's FTSE 100 was broadly flat at the market open on Friday, following a soft UK retail sales reading and ahead of a meeting in Washington in which the UK chancellor hopes to negotiate a potential US-UK trade deal.
The FTSE 100 index opened down 0.70 points at 8,406.74. The FTSE 250 was up 48.43 points, 0.3%, at 19,552.80, and the AIM All-Share was up 0.50 points, 0.1%, at 670.28.
The Cboe UK 100 was broadly flat at 837.14, the Cboe UK 250 was up 0.2% at 17,082.53, and the Cboe Small Companies was down 0.2% at 15,259.34.
UK retail sales slowed in March but exceeded consensus as good weather drove footfall, a report from the Office for National Statistics showed on Friday.
UK retail sales volumes rose by 0.4% in March, against a 0.7% growth in February. This outperformed an FXStreet-cited consensus for a 0.4% decline in sales.
Sales by clothing and outdoor retailers were boosted by good weather, said the ONS, though gains were partly offset by falls in supermarket sales.
Sales volumes rose by 2.6% over the year to March, far exceeding a 1.8% FXStreet-cited consensus and accelerated from a 2.2% rise in the year to February.
Meanwhile, UK car and commercial vehicle manufacturing production declined in the first quarter of 2025, ahead of new US tariff announcements, data published by the Society of Motor Manufacturers & Traders showed Friday.
Vehicle production was down 6.3% on-year in the first quarter, despite a 17% jump in March, which was due to March 2024 production being "weak" due to an early Easter that year, the SMMT said. Total vehicle manufacturing in the UK stood at 239,213 in the first quarter of 2025, compared to 255,283 a year ago.
Rachel Reeves will meet her US counterpart on Friday as she attempts to make progress on a trade deal during her visit to Washington.
The UK chancellor is expected to discuss a potential UK-US trade deal when she sits down with Treasury secretary Scott Bessent after a series of talks with other finance ministers at the International Monetary Fund's spring meetings earlier this week.
In European equities on Friday, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was 0.2% higher.
The pound was quoted at USD1.3302 early on Friday in London, higher compared to USD1.3292 at the equities close on Thursday. The euro stood higher at USD1.1363, against USD1.1351.
Against the yen, the dollar was trading up at JPY143.35 compared to JPY142.72.
Talks with British Prime Minister Keir Starmer could "pave the way" for a defence and security pact, EU chief Ursula von der Leyen said as the pair met in London. With a landmark post-Brexit EU-UK due summit next month, both sides are seeking to improve ties amid the global turmoil ushered in by US President Donald Trump.
In the US on Thursday, Wall Street ended in the green, with the Dow Jones Industrial Average up 1.2%, the S&P 500 also 1.2% higher and the Nasdaq Composite improving 2.7%.
In Asia on Friday, the Nikkei 225 index in Tokyo climbed 1.9%. In China, the Shanghai Composite was broadly flat, while the Hang Seng index in Hong Kong was up 0.2%. The S&P/ASX 200 in Sydney was closed for Anzac Day.
China's top leaders called on Friday to step up support for the economy and oppose "unilateral bullying" in global trade, according to a meeting readout published by state media.
The comments were a veiled rebuke of hefty tariffs recently imposed on China by US President Donald Trump, which have triggered a high-stakes tit-for-tat trade battle between the world's two largest economies.
The Chinese Communist Party's top decision-making body pledged to "work with the international community to actively uphold multilateralism and oppose unilateral bullying practices", Xinhua reported.
China also on Friday said its wind and solar energy capacity had surpassed that of mostly coal-powered thermal for the first time, following a boost in new installations this year.
"In the first quarter of 2025, China's newly installed wind and photovoltaic power capacity totalled 74.33 million kilowatts, bringing the cumulative installed capacity to 1.482 billion kilowatts," China's national energy body said.
"It has surpassed the installed capacity of thermal power [1.451 billion kilowatts] for the first time," it added, without defining thermal power in its short statement.
Vast Resources opened 24% higher on Friday.
The miner in Romania, Tajikistan and Zimbabwe announced the release of a historical diamond parcel in a "landmark success" for the firm. The parcel had been held at the Reserve Bank of Zimbabwe by order of the Supreme Court since early 2010.
"Despite the long and difficult processes that the company and shareholders have had to endure, the individual parcels remained untouched for over 15 years," said Vast Resources. A valuation estimate will be provided in "due course".
The firm noted that, upon the sale of the rough diamonds, expenses and fees could reach around 20% of the gross parcel value.
Wishbone Gold gained 23%.
The miner with projects in Western Australia said it was preparing to drill the main gold target at its Red Setter Dome project near the Telfer gold mine, which was identified in September 2024.
The target is around 200 metres deeper than previous drilling, and is "where the large prizes are potentially hidden", said Chair Richard Poulden.
Gold was quoted lower at USD3,309.68 an ounce on Friday against USD3,324.20 late Thursday.
Mobico Group was the FTSE 250's biggest loser, down 20%.
The public transport operator intends to sell its North America School Bus business to infrastructure investment manager I Squared Capital for up to USD608 million. The value of the deal includes an earn-out of up to USD70 million, which is dependent on future performance conditions.
Mobico expects the disposal to complete in the third quarter of 2025.
Looking ahead, Mobico expects to deliver 2024 adjusted operating profit at the lower end of guidance, with School Bus expected to contribute around GBP9 million to profit. The firm also expects to post a "significant" loss for the year, driven by goodwill write-offs, derecognition of deferred tax assets and onerous contract provisions in relation to its German business.
Mobico will release its full-year results on April 29.
Brent oil was quoted down at USD65.61 a barrel early in London on Friday from USD66.10 late Thursday.
Still to come on Friday's economic calendar, the US Michigan consumer sentiment index at 1500 BST.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
WishboneMobico GroupVast Resources