UK retail sales jump by 1.2% in April — beating expectations

German gross domestic product rose by 0.4% quarter on quarter in the three months to March, data from the country’s Federal Statistical Office showed on Friday.

The figures revised an earlier preliminary GDP print up by 0.2 percentage points, and means the first-quarter reading now marks the strongest quarterly economic growth in Germany since 2022.

Officials attributed the upward revision to stronger-than-expected growth in manufacturing output and exports.

— Chloe Taylor

Alex Kerr, U.K. economist at Capital Economics, warned that “the sun won’t shine on [Britain’s] retail sector forever.”

“Although for the first time since 2015, excluding the pandemic, retail sales volumes have risen for four months in a row, April’s impressive 1.2% m/m rise was largely driven by the unusually warm weather,” he said in a note sent shortly after the figures were published.

“That boost won’t last. So even though consumer confidence ticked up slightly in May, we suspect retail sales growth will slow over the coming months.”

— Chloe Taylor

It’s 8:10 a.m. in London, and regional stocks are broadly trading in positive territory.

The pan-European Stoxx 600 is 0.3% higher, with most sectors seeing gains.

London’s FTSE 100, Germany’s DAX and the French CAC 40 are all up by around 0.3%.

— Chloe Taylor

U.K. retail sales rose by an estimated 1.2% in April on a monthly basis, data from Britain’s Office for National Statistics showed on Friday.

The print exceeded a month-on-month rise of 0.2% anticipated by analysts, according to Reuters.

The April print marked a notable recovery from the previous month, when retail sales rose by 0.1% month-on-month. The March figure was revised down from a preliminary estimate of 0.4% growth in sales volumes.

The ONS said the April growth was helped by strong food store sales — which were up 3.9% on a monthly basis – that retailers attributed to good weather throughout the month.

— Chloe Taylor

Overnight in Asia, stock markets have been gripped by broadly positive momentum, after the U.S. and China agreed to keep communications open following a call between top officials.

On Wall Street, stock futures were little changed as investors continued to monitor elevated U.S. Treasury yields.

— Chloe Taylor

Investors will be monitoring economic data out of the European region, with figures due out on U.K. consumer confidence and retail sales as well as French consumer confidence data. A final print on Germany’s economic growth will also follow.

It’s a quieter day on earnings, with British Land and AJ Bell set to update shareholders on their finances.  

— Chloe Taylor

Good morning from London.

It’s just past 7 a.m. in the U.K. capital, and futures are pointing to broadly positive movement expected in regional stock markets at the open.

FTSE 100 futures are up 0.2%, DAX futures have gained 0.1%, and French CAC 40 futures are marginally higher.

— Chloe Taylor