London open: Stocks rise amid US debt ceiling hopes, after retail sales

London stocks rose in early trade on Friday amid growing hopes that a US debt ceiling deal will be done, as investors mulled better-than-expected UK retail sales data.

At 0840 BST, the FTSE 100 was up 0.7% at 7,621.85.

Sentiment was boosted after it was reported that US President Joe Biden and Republican House speaker Kevin McCarthy have moved closer to a two-year deal to limit government spending and avert a US debt default.

The Financial Times cited people familiar with the potential agreement as saying that negotiators were looking to finalise the deal in the coming days, ahead of a looming deadline of 1 June when the US could run out of cash to pay all of its financial obligations.

It was understood that over the course of the day on Thursday, both the White House and Republicans on Capitol Hill suggested the talks were in a better place, though nothing had been concluded.

On home shores, figures out earlier from the Office for National Statistics showed that retail sales rose more than expected in April as shoppers returned to the high street.

Retail sales increased by 0.5% following a 1.2% decline in March. This was ahead of analysts’ expectations of 0.3% growth.

Food store sales volumes were 0.7% higher, while non-food store sales were up 1%. Other store and department store sales rose 2.1% on the month and 1.7%, respectively.

ONS Chief Economist Grant Fitzner said: "Retail sales grew, partially rebounding from a poor weather affected March, with jewellers, sports retailers and department stores all having a good month. Despite continued high food prices, supermarkets also recovered from the fall in March.

"However, these were partly offset by a drop in the amount of fuel sold, despite prices also dropping."

In equity markets, heavily-weighted miners were among the top performers, with Rio Tinto, Antofagasta, Anglo American and Glencore all up.

Elsewhere, AstraZeneca gained after it said results from a Phase III trial showed its Imfinzi treatment in combination with chemotherapy showed a significant improvement in patients with endometrial cancer.

Asos ticked higher after the online fashion retailer raised £75m from investors to shore up its balance sheet.

Market Movers

FTSE 100 (UKX) 7,621.85 0.67%
FTSE 250 (MCX) 18,869.50 0.15%
techMARK (TASX) 4,589.43 0.18%

FTSE 100 - Risers

Rio Tinto (RIO) 4,955.50p 4.15%
Antofagasta (ANTO) 1,400.00p 3.70%
Anglo American (AAL) 2,340.00p 3.22%
Glencore (GLEN) 428.90p 3.00%
Fresnillo (FRES) 663.60p 1.69%
M&G (MNG) 195.10p 1.59%
Weir Group (WEIR) 1,733.00p 1.52%
Smurfit Kappa Group (CDI) (SKG) 2,978.00p 1.43%
Coca-Cola HBC AG (CDI) (CCH) 2,420.00p 1.21%
AstraZeneca (AZN) 11,774.00p 1.13%

FTSE 100 - Fallers

Vodafone Group (VOD) 79.99p -1.32%
Rightmove (RMV) 519.80p -0.95%
Pershing Square Holdings Ltd NPV (PSH) 2,734.00p -0.80%
Persimmon (PSN) 1,210.50p -0.74%
Kingfisher (KGF) 231.80p -0.52%
Taylor Wimpey (TW.) 116.80p -0.51%
Barratt Developments (BDEV) 475.20p -0.50%
British Land Company (BLND) 350.80p -0.48%
JD Sports Fashion (JD.) 147.95p -0.47%
RS Group (RS1) 794.80p -0.38%

FTSE 250 - Risers

Chemring Group (CHG) 270.50p 3.64%
Great Portland Estates (GPE) 513.00p 2.68%
Bodycote (BOY) 670.00p 2.68%
C&C Group (CDI) (CCR) 145.60p 2.68%
LXI Reit (LXI) 101.00p 2.49%
Lancashire Holdings Limited (LRE) 635.00p 2.42%
Tullow Oil (TLW) 25.12p 2.28%
Spire Healthcare Group (SPI) 234.00p 2.18%
Vanquis Banking Group 20 (VANQ) 228.50p 2.01%
Diversified Energy Company (DEC) 89.15p 2.00%

FTSE 250 - Fallers

Darktrace (DARK) 278.30p -4.69%
Auction Technology Group (ATG) 704.00p -4.22%
Bakkavor Group (BAKK) 91.00p -4.01%
Future (FUTR) 738.00p -3.78%
IntegraFin Holding (IHP) 271.40p -1.95%
Currys (CURY) 51.10p -1.73%
JTC (JTC) 706.50p -1.26%
TR Property Inv Trust (TRY) 283.00p -1.22%
Polar Capital Technology Trust (PCT) 2,130.00p -1.16%
Man Group (EMG) 217.30p -1.14%