Stocks were mostly steady on Friday, with upbeat eurozone growth figures supporting a cautious tone ahead of the key US employment report.
The eurozone economy expanded faster than initially estimated at the start of 2025, with both output and consumption showing improvement, official data showed.
According to Eurostat, gross domestic product in the euro area grew by 0.6% quarter-on-quarter in the first three months of 2025, accelerating from 0.3% in the previous quarter and above the flash estimate of 0.3% published on May 15. On an annual basis, GDP rose by 1.5%, up from the flash estimate of 1.2%.
The FTSE 100 index was up 1.17 points at 8,812.21. The FTSE 250 was down 0.52 points at 21,068.86, and the AIM All-Share was up 2.94 points, 0.4%, at 757.40.
The Cboe UK 100 was up 0.1% at 877.20, the Cboe UK 250 was up 0.1% at 18,582.04, and the Cboe Small Companies was up 1.0% at 16,950.53.
‘The UK stock market was a rare bright spot among a lacklustre session for European equities on Friday,’ AJ Bell’s Russ Mould commented. ‘Utilities and healthcare led the charge as investors focused on dividend-paying defensive-style stocks.’
Meanwhile, on the FTSE 100, HSBC was up 0.3%.
The London-based bank confirmed that Chair Mark Tucker will step down at the end of September, having previously announced that he would leave by the end of this year.
Earlier Friday, Hong Kong-based insurer AIA Group Ltd said Tucker will succeed Edmund Sze-Wing Tse as chair on October 1.
‘Tucker’s exit will coincide with Georges Elhedery’s first-year anniversary as CEO,’ Mould said. ‘The new boss has laid the foundations to have a more streamlined and efficient business, focused on key regional markets for growth.
‘The new chair will be responsible for making sure Elhedery and the rest of the board are focused on this strategic goal, while also upholding high levels of corporate governance.’
On the FTSE 250, Trainline rose 2.4%.
The London-based digital rail and coach booking platform said it has been chosen by the Rail Delivery Group as the digital payment provider for a nine-month trial on England’s rail network, following a competitive tender process.
‘The DPAYG trials represent a strategic opportunity for Trainline to demonstrate the benefits of its in-app solution in a live environment - ahead of DPAYG’s potential rollout to cities and regions around the UK - as well as to support the UK government’s broader rail reform programme,’ the firm commented.
However, Trainline noted that a formal contract is yet to be signed.
Over on AIM, Rosebank shares remain suspended.
The London-based acquisitions vehicle confirmed plans to raise £1.14 billion to fund the acquisition of Electrical Components International.
It said the cash deal places an enterprise value of $1.9 billion on St Louis, Missouri-based ECI, which is a manufacturer of electrical systems.
‘Shares in the cash shell rocketed on the stock market debut last summer as investors speculated about what Rosebank might achieve,’ Mould commented. ‘Reality now hits hard that it will need to raise a significant amount of money to make acquisitions, and then it could take years to do each one up.’
In other domestic news, the average UK house price fell by around £1,150 or 0.4% in May, Halifax Building Society said on Friday, according to its latest house price index.
Despite the monthly price drop, property values have increased by more than £7,000 over the past year, Halifax said. May’s month-on-month price fall follows a 0.3% increase in April.
The annual rate of house price growth also slowed to 2.5% in May, from 3.2% in April.
Halifax’s latest report contrasts with the findings from Nationwide Building Society’s latest house price index, released on Monday this week. Nationwide said that property values had increased by 0.5% month-on-month in May, following a 0.6% fall in April.
‘The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends,’ commented Amanda Bryden, head of mortgages at Halifax. ‘Despite ongoing pressure on household finances and a still uncertain economic backdrop, the housing market has shown resilience a story we expect to continue in the months ahead.’
In European equities on Friday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was down 0.2%.
‘A mixed start in Europe this morning as traders hunker down ahead of today’s US jobs report volatility,’ Rostro’s Joshua Mahony commented. ‘Coming hot off the heels of yesterday’s German factory orders beat, things are less optimistic today thanks to declining industrial production figures from Germany (-1.4%) and France (-1.4%).
‘Meanwhile, a weaker-than-expected retail sales figure wrapped up a morning that did little to lift hopes of an economic boom in the eurozone.
‘Coming in the wake of yesterday’s ECB meeting, the committee will wonder whether they need to cut further to stimulate growth or perhaps the onus should now shift to the politicians to use their fiscal levers.’
Meanwhile, Germany could face two more years of recession if a trade war with the US escalates sharply, its central bank said, a bleak warning for Europe’s struggling top economy.
If US President Donald Trump’s tariffs were to be implemented in full from July and the EU were to retaliate, then German output would decline 0.5% this year and 0.2% in 2026, the Bundesbank predicted.
This would be due to a ‘marked decline in exports and significant uncertainty weighing on investment,’ it said. There would, however, be a return to growth in 2027, with a rebound of 1%.
Meanwhile, the EU Chamber of Commerce in China sees ‘some improvement’ in the dispute over Beijing’s export controls on rare earths and magnets that are critical to global industry.
The number of export licences for European companies has increased, the chamber in Beijing said, as China has apparently given priority to the most urgent cases ‘in order to avoid a major crisis’.
The pound was quoted at $1.3548 at midday on Friday in London, lower compared to $1.3596 at the equities close on Thursday. The euro stood at $1.1424, lower against $1.1456. Against the yen, the dollar was trading higher at JP¥144.03 compared to JP¥143.57.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.3%, the S&P 500 index up 0.5%, and the Nasdaq Composite up 0.5%.
‘Looking ahead, today sees a focus on the jobs report, with the economy balancing on a tightrope,’ Mahoney commented. ‘Job growth has clearly slowed under the weight of persistent tariff uncertainty and political infighting, yet not enough to trigger immediate Fed intervention given ongoing uncertainty over the path for US inflation and trade.
‘With businesses stuck in a quagmire of political and economic uncertainty centring around the White House, it will come as no surprise to see them hold off on hiring new employees until they get clarity over the long-term lay of the land. The longer we have this uncertainty, the more the US will likely lose momentum, and the inability of firms to plan ahead appears to be taking its toll.’
The yield on the US 10-year Treasury was quoted at 4.38%, narrowing from 4.39%. The yield on the US 30-year Treasury was quoted at 4.87%, narrowing from 4.89%.
Brent oil was quoted lower at $65.39 a barrel at midday in London on Friday from $65.51 late Thursday.
Gold was quoted lower at $3,358.21 an ounce against $3,364.84.
Still to come on Friday’s economic calendar is the key US nonfarm payroll data, as well as average weekly hours.
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