(Alliance News) - Stock prices in London opened in the green on Friday morning, following a positive close in Asia overnight, despite weak UK data and concerns about a second coronavirus wave in Hong Kong due to massive protest gatherings.
The FTSE 100 index was up 74.50 points, or 1.2%, at 6,415.94 on Friday. Since the week began, the blue-chip index is up 2.9%, though it remains down 15% so far in 2020.
The mid-cap FTSE 250 index was up 1.4% at 18,075.72, and the AIM All-Share index was up 0.6% at 902.33.
The Cboe UK 100 index was 1.2% higher at 10,852.25. The Cboe 250 was up 1.5% at 15,995.22, and the Cboe Small Companies up 0.4% at 12,705.35.
In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were both up 2.0%.
UK consumer confidence is teetering just above its 2008 historic low point, according to an index. Research carried out between May 20 and 26 found confidence had deteriorated over the previous two weeks.
The report from GfK measuring households' perceptions of their own finances and the wider UK economy found confidence had decreased by two points to minus 36. This was just three points shy of a historic low confidence score for the index of minus 39 in July 2008.
Behind the overall score, perceptions about personal finances and the wider economy over the past 12 months and next 12 months deteriorated.
The pound was quoted at USD1.2609 early Friday, up from USD1.2592 at the London equities close Thursday. The euro was at USD1.1345 early Friday, firm from USD1.1333 late Thursday.
Against the yen, the dollar was trading at JPY109.18 early Friday in London, firm from JPY108.98 late Thursday.
The Hang Seng index in Hong Kong closed up 1.7% on Friday. Elsewhere in China, the Shanghai Composite closed up 0.4%. In Japan, Tokyo's Nikkei 225 index closed up 0.7%.
"There is finally some questioning among investors that the latest equity rally may have gone too far and a part of gains may be unfounded due to weak economic data, rising political unrest in US and Hong Kong and tenser trade relations between the US and China. The commemoration of Tiananmen events in Hong Kong added fuel to fire on Thursday," said Swissquote Bank analyst Ipek Ozkardeskaya.
Thousands gathered in Hong Kong to commemorate the 1989 Tiananmen Square Massacre, defying a ban on the event for the first time in 31 years.
Organizers of the candle-lit observance, the Hong Kong Alliance, had called on the tens of thousands of residents who normally attend the annual event to keep an individual vigil or join an online programme.
While many posted photos of themselves at home, thousands went ahead and defied the official decision by authorities to quash the event and turned up at Hong Kong's Victoria Park for the vigil anyway.
Determined attendees could be seen clambering over cordoned off areas to get inside the park, where old and young lit candles with few interventions by police.
"If the human and political dimension of street protests do not worry investors, the fact that such gatherings increase the risk of a renewed rise in new coronavirus cases should," added Ozkardeskaya.
Governments around the world pledged USD8.8 billion for global vaccines alliance Gavi to help immunisation programmes disrupted by coronavirus, prompting calls for global cooperation to ensure a potential Covid-19 vaccine is available to all.
The online meeting beat a target to raise USD7.4 million to provide vaccines at a much reduced cost to 300 million children worldwide over the next five years, Gavi said.
More than 50 countries took part as well as individuals such as billionaire philanthropist Bill Gates, whose foundation pledged USD1.6 billion.
On the London Stock Exchange, Taylor Wimpey was up 3.7%, after saying that it is progressing construction on a majority of its sites across England and Wales, with Scottish sites now also starting preparation for a return to construction.
Total completions - including joint ventures - in the 22 weeks to the end of May were 2,455 compared to 4,052 a year earlier, reflecting the impact of site closures, Taylor Wimpey said.
UK net sales rate has increased to 0.51 for week ending May 31 and is now 0.72 for the five months to the end of May. However, this is still lower than 0.99 a year ago.
The company said it is experiencing a "very high" level of demand for appointments, as majority of its show homes and sales centres have reopened in England, though on an appointment-only basis.
Looking ahead, Taylor Wimpey said its order book remains "strong", with a healthy increase in reservations made in recent weeks. The UK order book has continued to increase. As at week ending May 31 its total value stood at GBP2.78 billion versus GBP2.52 billion the year before.
Among the mid-caps, Biffa started the day 4.5% lower, after saying that it will pay no final dividend, as part of its Covid-19 cash conservation efforts. This means its annual dividend dropped by 66% to 2.47 pence a share from 7.20p paid in financial 2019.
For the 52 weeks ended March 27, revenue grew by 6.6% to GBP1.16 billion from GBP1.09 billion a year ago. This resulted in more than doubled pretax profit of GBP56.4 million versus GBP21.5 million a year earlier.
"Proactive steps to conserve cash have included temporarily suspending mergers & acquisitions activity and dividends; reducing capital expenditure, operating costs, pay and bonuses; utilising government assistance where appropriate and securing the necessary support from our lenders and suppliers," explained Chief Executive Michael Topham.
"These actions have placed us in a strong position to withstand the immediate impact of the crisis as we continue to provide critical and sustainable infrastructure and services," added Topham.
In commodities, gold was quoted at USD1,709.65 an ounce early Friday, down from USD1,713.66 late Thursday. Brent oil was at USD40.60 a barrel, up from USD39.28.
The economic events calendar on Friday has the US jobs report for May at 1330 BST.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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