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London stocks were set to scrape out a gain out for the week, helped by miners and Vodafone, as investors sifted through a mixed set of economic data on Friday.
The FTSE 100
UKX,
rose 0.7% to 7,020.73, on track for a weekly gain of barely 0.2%. Fresh data included U.K. retail sales, which rose a surprise 0.5%, against expectations for a modest decline.
“While there are questions around high-street retail demand despite government steps to reopen the economy, the saving grace appears to have come from football fans who drove up alcohol and food sales for the euro 2020 tournament,” said Joshua Mahony, senior market analyst at IG, in a note to clients.
“Restrictions limiting pubs to tables of six pushed many to watch the tournament at home, and with England’s final three games of the tournament falling in July it is likely we will see a similar boost next month,” he said.
The news was less cheery for the IHS Markit flash July composite purchasing managers index, which came in at a four-month low of 57.7 from 62.2 in June.
“July saw the U.K. economy’s recent growth spurt stifled by the rising wave of virus infections, which subdued customer demand, disrupted supply chains and caused widespread staff shortages, and cast a darkening shadow over the outlook,” said Chris Williamson, chief business economist at IHS Markit, in a press release.
Mahony said with Covid cases rising, there are concerns the U.K. economy could see pressure as individuals are told to quarantine.
The U.K. government announced plans to test food-industry workers daily for COVID-19 to prevent shortages, and allow them to keep working even after contact with infected individuals. But a sharp rise in infections and notifications telling individuals to stay home has led to shortages of food and gas in parts of the country.
Among stocks on the move, shares of Vodafone
VOD,
VOD,
rose more than 2% after reporting a rise in revenue in the first quarter of fiscal 2022, after a hit caused by the pandemic, and said it’s on track to meet full-year expectations.
Mining stocks were contributing to gains, with shares of Rio Tinto
RIO,
RIO,
BHP Group
BHP,
BHP,
Glencore
GLEN,
and Anglo American
AAL,
all up by 1% or more.
