London open: Stocks rise as investors mull GDP data

At 0850 BST, the FTSE 100 was up 0.5% at 7,126.19.

Neil Wilson, chief market analyst at Markets.com, said: "A mildly positive start to the Friday session for European markets after Wall Street set fresh records, with the S&P 500 jumping to a new all-time high even as data showed US inflation surged in May.

"US CPI rose to 5% last month, whilst the core reading rose to +3.8%, the highest in 30 years. Core month-on-month declined from 0.9% in April to 0.7% in May but still remains extremely high. Rates actually fell with the 10yr Treasury under 1.44%, sending the dollar to under 90 and gold firmer.

"Hot inflation readings right now are pretty much fully priced and understood, as is the reaction function of central banks: they see it as transitory, nothing to worry about. This was evinced by the European Central Bank yesterday, which stuck to the inflation-is-temporary script."

Oh home shores, figures released earlier by the Office for National Statistics showed the economy grew in April at its fastest monthly rate since July 2020 as lockdown restrictions eased. GDP expanded by 2.3% following 2.1% growth in March and versus expectations for 2.5% growth.

On the year, GDP was up 27.6%. Nevertheless, the UK economy is still 3.7% smaller than it was in February 2020, before the pandemic and related restrictions kicked in.

Retail sales volumes grew 9.2% on the month in April after all non-essential stores reopened from 12 April in England and Wales and from 26 April in Scotland. Education output was the second main contributor to services growth, according to the ONS, up 11.2% as more pupils returned to onsite lessons in April.

ONS deputy national statistician for Economic Statistics Jonathan Athow said: "Strong growth in retail spending, increased car and caravan purchases, schools being open for the full month and the beginning of the reopening of hospitality all boosted the economy in April."

In equity markets, asset management services provider Sanne surged as it said it was in talks with Cinven after the buyout firm made a new 875p-a-share offer for the firm. Sanne had previously rejected a £1.35bn proposal as too low. Cinven now has until July 9 to make a firm offer.

Precious metals miners Fresnillo and Polymetal shone as gold prices gained.

On the downside, Domino’s Pizza lost ground after it emerged that chief financial officer Neil Smith is leaving the group to become finance director of pub and hotels company Fuller, Smith & Turner.

Elsewhere, equipment rental firm Ashtead was knocked lower by a downgrade to ‘hold’ from ‘buy’ at Deutsche Bank.

Market Movers

FTSE 100 (UKX) 7,126.19 0.54%
FTSE 250 (MCX) 22,681.22 0.32%
techMARK (TASX) 4,447.20 0.42%

FTSE 100 - Risers

Fresnillo (FRES) 871.20p 2.49%
Glencore (GLEN) 326.80p 2.16%
Bunzl (BNZL) 2,306.00p 2.13%
Entain (ENT) 1,800.00p 1.98%
Antofagasta (ANTO) 1,526.00p 1.94%
Polymetal International (POLY) 1,692.00p 1.93%
Associated British Foods (ABF) 2,370.00p 1.76%
Evraz (EVR) 634.00p 1.73%
Smurfit Kappa Group (CDI) (SKG) 3,864.00p 1.66%
Halma (HLMA) 2,723.00p 1.60%

FTSE 100 - Fallers

Just Eat Takeaway.Com N.V. (CDI) (JET) 6,507.00p -1.78%
Informa (INF) 549.20p -1.54%
Ashtead Group (AHT) 5,004.00p -1.26%
Standard Chartered (STAN) 492.20p -1.07%
BT Group (BT.A) 194.10p -0.54%
Schroders (SDR) 3,519.00p -0.42%
HSBC Holdings (HSBA) 434.85p -0.30%
Lloyds Banking Group (LLOY) 48.15p -0.26%
Land Securities Group (LAND) 708.40p -0.17%
Smith & Nephew (SN.) 1,540.50p -0.13%

FTSE 250 - Risers

Sanne Group (SNN) 866.00p 12.18%
FDM Group (Holdings) (FDM) 1,004.00p 2.97%
Allianz Technology Trust (ATT) 272.00p 2.26%
PureTech Health (PRTC) 388.50p 2.24%
BlackRock World Mining Trust (BRWM) 654.00p 2.19%
Mitie Group (MTO) 77.30p 1.84%
Centamin (DI) (CEY) 112.65p 1.76%
RHI Magnesita N.V. (DI) (RHIM) 4,378.00p 1.58%
Hill & Smith Holdings (HILS) 1,448.00p 1.54%
Marks & Spencer Group (MKS) 159.85p 1.52%

FTSE 250 - Fallers

Domino's Pizza Group (DOM) 382.60p -1.95%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,507.00p -1.78%
Cineworld Group (CINE) 87.22p -1.27%
Fidelity China Special Situations (FCSS) 412.50p -0.96%
Aston Martin Lagonda Global Holdings (AML) 1,950.00p -0.91%
UK Commercial Property Reit Limited (UKCM) 80.00p -0.87%
Unite Group (UTG) 1,165.00p -0.85%
CLS Holdings (CLI) 253.00p -0.78%
LondonMetric Property (LMP) 233.80p -0.76%
Provident Financial (PFG) 237.80p -0.75%