Thanks for joining me. Retailers will be hoping for a successful Black Friday as data showed falling inflation and sustained pay growth appears to be boosting households’ confidence.
GfK’s consumer confidence tracker, which has surveyed households since the 1970s, showed a sharp rise in sentiment, particularly when it comes to families’ assessments of the economy and their willingness to commit to major purchases.
It comes as retailers offer big discounts for Black Friday, the shopping event that takes place on the fourth Friday of November each year after the US Thanksgiving holiday.
Joe Staton, director at GfK, said: “People are thinking about their future with increased confidence and willingness to look beyond the short-term.
He said the improvement in confidence “will be good news for retailers looking to benefit from Black Friday and Christmas”.
He added: Despite the acute cost-of-living pressures, many would still like to loosen their purse strings just a little so they can enjoy that feel-good factor we all associate with the festive season.”
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What happened overnight
Shares were mixed in Asia, with Hong Kong retreating on selling of property shares following recent gains.
US futures edged higher after markets on Wall Street were closed on Thursday for the Thanksgiving holiday. Oil prices slipped.
Japan reported its consumer inflation rose for the first time in four months, with big gains in food prices and hotel rates as tourism has soared.
The consumer price index rose 3.3pc in October from a year earlier, up from 3pc in September in a trend contrary to the Bank of Japan’s forecasts for price pressures to abate toward the year’s end.
Tokyo shares closed higher as investors took heart from a rebound on Wall Street earlier this week and the yen’s slight depreciation against the dollar.
The benchmark Nikkei 225 index rose 0.5pc, or 173.70 points, to 33,625.53, while the broader Topix index ended up 0.5pc, or 12.75 points, at 2,390.94.
Chinese shares fell back after recent gains driven by expectations of more government support for debt-burdened property developers. Shares in Country Garden, one of the biggest, sank 6.7pc after gaining 16pc the day before.
In Hong Kong, the Hang Seng fell 1.4pc to 17,663.08. The Shanghai Composite index lost 0.5pc to 3,047.23.
South Korea’s Kospi declined 0.5pc to 2,501.09, while the S&P/ASX 200 in Australia gained 0.2pc, to 7,045.80
The US markets were closed yesterday as a result of Thanksgiving.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6pc but are still headed for a weekly gain of 0.8pc.
Japan’s markets returned from a holiday, with the Nikkei climbing 0.7pc to charge towards a 33-year high hit on Monday.
Chinese bluechips fell 0.7pc, while Hong Kong’s Hang Seng index tumbled 1.4pc, reversing the previous day’s hefty gains.
