The FTSE 100 and European stocks opened mixed this Friday as in the UK investors mulled the latest UK retail sales and consumer confidence data.
The FTSE 100 (^FTSE) was flat at 7,900 points at the open, while the CAC 40 (^FCHI) in Paris climbed 0.18% to 7,552 points. In Germany, the DAX (^GDAXI) was also trading near the flatline, at 15,793.
FTSE 100
The UK’s blue chip index struggled for direction in early trading, with losses in industrial miners countering gains in consumer staples and healthcare stocks.
Industrial miners slid 2.4%, led by a 3.99% fall in Rio Tinto (RIO.L) after JP Morgan cut its target price for the miner. Glencore (GLEN.L) lost 1.21% after it reported lower copper, zinc and nickel production for the first quarter.
Sentiment was also being weighed down by weak retail data. Figures released by the Office for National Statistics showed that retail sales fell by more than expected in March after wet weather kept shoppers at home.
Retail sales volumes fell by 0.9% in March, following a downwardly-revised increase of 1.1% in February. Most analysts had been looking for a 0.5% decline.
Within that, food store sales volumes eased 0.7%, reversing February’s 0.6% increase, while non-food stores sales were down 1.3%, compared to a 2.4% rise a month previously.
Read more: UK retail sales shrink 0.9% but consumers more confident
Deutsche Bank said: “The last 24 hours have seen a stronger risk-off move in markets, thanks to another round of weak data releases that strengthened fears of a US recession once again.”
Richard Hunter, head of markets at Interactive Investor, added: “Mixed company earnings and softening economic data are keeping a lid on sentiment, as investors ponder the timing and depth of a potential recession.”
London-listed payment services firm Network International Holdings (NETW.L) was at the centre of a bid battle on Friday morning after it confirmed it had received a second approach from a would-be buyer.
The company said Brookfield Asset Management was offering 400p per share bid, more than the £387p on the table from a rival consortium of suitors made up by CVC Advisers and Francisco Partners Management.
The new bid values Network at around £2.2bn ($2.7bn).
US and Asia
Across the pond, S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the red as trade began in Europe.
US stocks closed lower on Thursday amid weaker-than-expected quarterly profit at Tesla (TSLA), mixed earnings data from various sectors, and softer-than-expected housing and jobs data.
The Dow Jones (^DJI) lost 0.33% to close at 33,786 points. The S&P 500 (^GSPC) slipped 0.60% to finish at 4,129 points and the tech-heavy NASDAQ (^IXIC) fell 0.80% to 12,059.
Economic data also came into focus Thursday as weekly jobless claims came in higher than expected. The report said 245,000 jobless claims were filed. Economists surveyed by Bloomberg had been expecting 240,000 claims. Meanwhile, existing home sales retreated 2.4% in March from the month prior.
The annualised rate of 4.44 million fell short of the 4.5 million expected by economists, according to Bloomberg data.
Read more: Interest rates: A guide to ‘mortgage hopping’ to get the best deal for your property
In Asia, Tokyo’s Nikkei 225 (^N225) slipped 0.33% to 28,564 points, while the Hang Seng (^HSI) in Hong Kong lost 1.44% to 20,103. The Shanghai Composite (000001.SS) tumbled 1.83% to 3,305 points.
Pound vs dollar
The pound (GBPUSD=X) lost some ground against the US dollar, with sterling trading at $1.2406.
The dollar has been climbing on the foreign exchange markets amid fears that the US Federal Reserve will again lift interest rates soon.
The same was happening against the euro, with sterling (GBPEUR=X) hovering around €1.13.
Oil markets
Meanwhile, Brent crude (BZ=F) lost ground and was trading at around $80 per barrel as softening US economic data and a rise in US gasoline inventories raised concerns about a recession and slower global oil demand.
“Market sentiment remained bearish after the weak U.S. economic data, along with expectations of interest rate hikes, fuelling worries over a recession that could dent oil demand,” Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, told Reuters.
Watch: US banking outlook: Regulatory crackdown is ‘inevitable’
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