The FTSE 100 has broken through 7,000 points for the first time in 14 months in a £532bn comeback from pandemic lows, as London stocks were buoyed by surging optimism over the global economy.
Britain's blue-chip index pushed past the landmark for the first time since February 26 last year as trillions of dollars in stimulus and the growing momentum behind vaccine roll-outs triggered a share “melt-up” and traders bet on a rapid worldwide bounceback.
The FTSE 100 closed 0.5pc or 36.03 points higher at 7019.53, representing a gain of more than 2,000 points from its nadir of 4,993.9 on March 23 last year - the day Prime Minister Boris Johnson announced the first lockdown. It has gained £532bn in value since the Covid crash struck, fuelling a recovery in the value of millions of savers' pension pots.
Experts said the rally still has further to run, with the Bank of England expected to keep interest rates at record lows for the foreseeable future and Rishi Sunak, the Chancellor, spending heavily to support reopening efforts.
Nick Peters, a portfolio manager at Fidelity International, said: "As the global recovery becomes more entrenched, fuelled by continued fiscal stimulus and ultra-loose monetary policy, we think this should translate into continued positive UK equity market performance."
The British gains were echoed around the world in a breathless week for financial markets, as a record 18.3pc growth surge for China followed a raft of positive news from America.
US house building rose to a 15-year high last month, adding to the mounting evidence of an economic boom after retail sales surged as consumers used their $1,400 (£1,000) stimulus cheques from President Joe Biden. Claims for jobless benefits fell to their lowest level since the pandemic struck this week.
Wall Street's Dow Jones Industrial Average has also pushed past 34,000 points for the first time, and the S&P 500 reached another record high as Bank of America analysts hailed the impact of $30 trillion of firepower aimed at the crisis by governments and central banks worldwide.
The FTSE 100 is still almost 10pc below the levels reached at the beginning of last year and is lagging behind other markets.
The S&P is already more than 20pc ahead of its February 2020 levels, while the Dow, Germany’s Dax and France’s CAC 40 have also overtaken their pre-pandemic scores. The Dax rose 1.3pc to a new high as Germany’s carmakers were buoyed by the Chinese growth.
In Britain the more domestically focused FTSE 250 index closed at a new record high on Friday after several weeks of gains. It erased all pandemic losses earlier this month.
BoA said the 76pc jump in US stocks from March 2020 lows was the third biggest year on year gain in the past 100 years. Investors have pumped more than $25bn (£18bn) into shares in the past week. In the past five months a mammoth $576bn (£419bn) has been pumped into global equity funds, more than the whole of the previous 12 years.
The advance of vaccination programmes and loosening of restrictions has also fuelled the market exuberance with an estimated 850m jabs now administered across 154 countries to more than 10pc of the global population.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said: “"As the economic re-opening accelerates in the coming months, we believe the bull market remains on a solid footing.”
A study by Deloitte also found that chief financial officers are more optimistic now than at any point in the last 13 years as the vaccine rollout boosts hopes of a sharp recovery. Traders are also betting on a range of assets as the price of bitcoin has almost doubled to $61,799 since the beginning of the year. Copper saw its biggest price rise for two months this week and Brent crude oil has risen 30pc so far in 2021.
Capital Economics said: “We expect oil prices will rise further in the months ahead as the rollout of vaccines and relaxation of virus-related restrictions prompts a leg-up in demand.”
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05:31 PM
Wrapping up
That is all from us today - here are some of our top stories:
Thank you for following along, and have a great weekend! See you next week.
05:22 PM
US markets join the rally
New York's markets have joined the global rally today, on strong economic data from China which has helped further fuel optimism over a global economic recovery.
By early afternoon here is where America's three main indices sit:
S&P 500: +0.2pc
Dow Jones: +0.3pc
Tech-heavy Nasdaq: +0.3pc
04:57 PM
FCA bans Cypriot-based firm from London
The Financial Conduct Authority earlier today announced it has prevented a Cypriot-based firm, Finteractive Limited (FXVC), from offering high risk contracts for difference (CFDs) to UK investors.
The watchdog said FXVC "used a variety of inappropriate techniques, including misleading financial promotions which appeared to offer consumers the opportunity to purchase shares in a well-known company and failed to mention that they were actually promoting CFDs".
In the statement, it were "unclear about the nature of the investments that they were being persuaded to make and the risks involved in trading in CFDs", claiming that the firm used "pressure tactics" to encourage investments.
The FCA has stopped FXVC conducting any regulated activities in the UK and required the firm to close all trading positions and return the money to customers.
04:45 PM
Kainos falls despite positive update
Shares in FTSE 250-listed software firm Kainos fell by 55p to £16.42 today, despite it saying it recruited another more than 300 employees and contractors in the last year, bringing the total to 2,024 people.
The firm also and revealed annual results, to be announced on May 24, are likely to be at the upper end of analyst expectations.
It added that demand from new and existing customers remains strong even amid coronavirus-induced uncertainty.
04:05 PM
WeWork parent-backed fund sells London office investment
WeWork
The real estate fund back by WeWork parent We Co - ARK - is planning to sell one of its first London office investments as the easing of restrictions gives landlords more hope of finding buyers.
Bloomberg has the details:
Broker Knight Frank has been hired to find a buyer for 120 Moorgate in the City of London, which is valued at about £140m.
Most of the WeWork-operated office building is subleased to pharmaceutical company Merck & Co. for seven years, while Barclays rents the ground floor, the news agency said. Representatives for WeWork, which plans to continue operating the property after any sale, and Knight Frank declined to comment.
The sale comes as China’s Taikang Insurance Group invites brokers to pitch for the mandate to sell Milton Gate on the edge of the main financial district.
The property is leased to law firm Addleshaw Goddard and valued at about £230m. A spokesperson for Taikang did not immediately respond to Bloomberg's messages via WeChat.
03:30 PM
Morgan Stanley's $911m Archegos Capital loss
Morgan Stanley unveiled a $911m (£660m) loss from the collapse of Archegos Capital Management, the trading empire owned by Bill Hwang.
My colleague Maighna Nanu reports:
The investment bank posted a $644m credit loss and $267m of trading losses during the first quarter which it said were tied to the implosion of Archegos. The family office owned by Mr Hwang defaulted on margin calls last month and triggered a firesale of stocks across Wall Street.
It has caused heavy losses at a string of global investment banks including Credit Suisse, which was left nursing losses totalling $4.7bn.
The collapse of Archegos dented an otherwise record quarter for revenue and profit at Morgan Stanley, which posted an overall net income of $4.1bn in the first quarter compared with $1.7bn a year earlier.
Net revenues jumped 60pc to $15.7bn as the bank benefited from a boom in dealmaking through so-called special purpose acquisition companies (SPACs) in the US.
02:55 PM
Global recovery optimism boosts FTSE
City of London
With just over 30 minutes until the close, the FTSE 100 is set to close above 7,000 for the first time since February 2020.
Michael Hewson, chief markets analyst at CMC Markets, says:
The FTSE 100 has ended the week by pushing through the 7,000 level for the first time since February 2020, as more evidence of a strong global recovery has helped boost sentiment heading into the weekend.
A big rebound in China Q1 GDP numbers released this morning, as well as a strong retail sales number, has served to add fuel to the fire of optimism that has coursed through global markets this week, in the wake of yesterday's bumper US retail sales number.
We’ve seen gains in the automotive sector helped by a decent rebound in European car sales in March, but also a strong update from Daimler, which sent the shares to their highest levels in over a year, after reporting a big jump in quarterly earnings helped by a big rebound in China sales. This was driven by strong demand for Mercedes cars, helping to push global sales up by 22pc to 581,270 with China sales rising 60pc.
Some more positive numbers for US banks have helped give financials a bit of a leg up, with Barclays leading the banks higher.
02:30 PM
ISS urges shareholders to vote against racial-audit resolutions
Goldman
A major proxy-advisory firm has recommended that shareholders vote against proposals for independent racial audits at Goldman Sachs.
My colleague Mutaz Ahmed reports:
Institutional Shareholder Services said in a report yesterday that as Goldman Sachs is already taking “meaningful actions” to tackle racial and economic inequalities, shareholders should not ask it undergo a formal analysis to judge whether it has contributed to racial discrimination.
The firm cited signs of improvement for people of colour in senior-management roles at the bank as an example of it “addressing the issue of racial and economic inequality.”
ISS has in the past also advised shareholders to align with management by voting against racial audits at Citigroup, Bank of America and Wells Fargo, although one of the firm’s rivals, Glass Lewis, has advised shareholders to vote in favour of the racial audits at major banks.
Requests by shareholders for racial audits have increased in the wake of the widespread Black Lives Matter protests last summer, when a series of corporate executives, including those Goldman Sachs, made statements supporting racial justice.
02:05 PM
Ocado gets on the road to self-driving delivery vans
Ocado
Our retail editor Laura Onita has a full report on this morning's update from Ocado. She writes:
Ocado is investing £10m in a self-driving vehicle start-up as it seeks to build its own autonomous vans.
The company first started working with Oxbotica in 2017 when it launched a two-week trial for grocery delivery in London.
Ocado hopes to use some of the technology and software to eventually power self-driving vehicles in and around its depots, and even have robots drop off shopping in people’s homes.
It said that early prototypes were expected within two years and the ultimate goal was to offer it to other major grocers around the world to reduce the costs of logistics.
The race to use delivery robots for groceries on a larger scale is heating up.
Retailers such as the Co-op have been testing them with a goal of using 300 of the robots by the end of the year.
Several Tesco and Budgens stores in Milton Keynes also offer Starship deliveries. The rival firm was launched in 2014 by two Skype co-founders, Ahti Heinla and Janus Friis.
Morgan Stanley burned by $911m hit on Archegos blowup
Morgan Stanley
Morgan Stanley surprised investors with a $911 million loss tied to the collapse of Archegos Capital Management, staining what was otherwise a record quarter for revenue and profit.
Bloomberg has the details:
“The current quarter includes a loss of $644 million related to a credit event for a single prime brokerage client, and $267 million of subsequent trading losses through the end of the quarter related to the same event,” Morgan Stanley said Friday in its first-quarter earnings statement.
The hit was related to Archegos, a person familiar with the matter confirmed.
The Archegos disclosure leaves Morgan Stanley as the only major U.S. bank to be nursing losses from the flameout of Bill Hwang’s family office. New York-based Morgan Stanley was one of the early backers of Archegos despite the legal taint tied to Hwang, who was previously accused of insider trading and in 2012 pleaded guilty to wire fraud on behalf of his predecessor hedge fund, Tiger Asia Management.
The collapse rattled investment banks across continents, with Credit Suisse Group AG emerging as the worst hit with almost $5 billion in losses from its exposure to the family office.
Morgan Stanley’s equity traders gave up their No. 1 spot, falling behind Goldman Sachs Group Inc. and JPMorgan Chase & Co., which posted big trading wins earlier this week off a wild quarter for markets.
12:56 PM
Worker exodus less than first feared
The number of workers who left the UK last year after the pandemic struck may have been smaller than first thought, while historic migration may have been underestimated, fresh data has suggested.
My colleague Tim Wallace reports:
There was a net emigration of an estimated 50,000 people in the three months to June 2020, according to the Office for National Statistics.
The latest drop only covers the initial impact of Covid-19, but so far indicates the hit to the population is much smaller than first feared. Estimates had indicated that anywhere between 200,000 and 1.3m people could have left the country.
Although lower than anticipated, the figures still represent a rare and sudden reversal in the usual flows of workers, students and travellers, which had been significant until Covid arrived. Over the 12 months to June net migration was around 282,000, the ONS said.
Combined with deaths caused by Covid and slowing births, the shift to emigration pushed the UK's population growth down to the slowest pace since 2003.
In the middle of 2020 the population stood at 67.1m, a rise of 0.5pc on the year.
Asda’s finance chief is stepping down as its new owners, the billionaire Issa brothers, take over this month.
My colleague Laura Onita writes:
Rob McWilliam joined the supermarket three years ago to assist with the botched Sainsbury’s merger as chief financial office.
The news comes after boss Roger Burnley said last month he was leaving the grocer after five years with the firm. Industry sources have said that more departures are on the cards.
Next week the competition watchdog will reveal its preliminary decision on the £6.8bn takeover of Asda.
The Issas, who own a vast petrol station empire, and TDR won control of the supermarket chain in October, returning it to British ownership after almost 20 years.
The entrepreneurs have lined up a separate £750m deal to buy the grocer’s forecourt business.
They have had to wait for a verdict from the Competition and Markets Authority to stamp their mark on the supermarket chain.
Asda said McWilliam joined on a fixed contract, which was subsequently extended, and he plans to focus on non-executive and advisory roles. John Fallon replaces him as chief financial officer.
11:48 AM
Spending watchdog launches Greensill probe
David Cameron and Lex Greensill (right) - Wall Street Journal
The Government's spending watchdog has announced an investigation into collapsed lender Greensill Capital's involvement in coronavirus support schemes.
The National Audit Office (NAO) said this afternoon that it will examine how the Government-backed British Business Bank approved Greensill bank to lend out sums for the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
Greensill was able to offer funding to UK businesses with a turnover of above £45m if they had been affected by the pandemic before it filed for insolvency in March.
The NAO said:
This investigation will cover Greensill Capital’s involvement in the Government’s Covid-19 support schemes, including the accreditation process, and any post-accreditation monitoring of Greensill Capital’s activities.
Prime Minister Boris Johnson has launched a separate independent review into how Greensill won government contracts after former PM David Cameron lobbied ministers for access.
Mr Cameron ended weeks of silence to deny wrongdoing during his time as a paid adviser of the bank, having sent texts to Chancellor Rishi Sunak in an attempt to secure support for the company through the Government's Covid Corporate Financing Facility (CCFF). He is also alleged to have arranged a "private drink" with Health Secretary Matt Hancock and the bank's founder, Lex Greensill, to discuss a payment scheme later rolled out in the NHS.
11:14 AM
'It's been an unusual recession'
London Stock Exchange's FTSE 100 index has surpassed 7,000 points for the first time since the pandemic began - Toby Melville /Reuters
The FTSE 100 is now at 7,019 points, staying above that huge milestone today for the first time since its historic plunge in February 2020 that marked the start of the economic fallout of Covid in the West.
Jonathan Winton, portfolio manager of Fidelity UK Smaller Companies Fund, said the sharp recovery - although admittedly slower off the mark than in the US - is a sign of the UK's improved economic outlook and Brexit deal.
He says:
This time last year many people wouldn’t have expected the markets to have recovered as strongly as they have with the FTSE 250 making all-time highs, but it’s been an unusual recession, and the announcement of a Covid-19 vaccine last year combined with the fast rollout in the UK has seen the economic outlook markedly improve. Sentiment has been further boosted by a Brexit resolution which has seen domestically orientated names recover from very depressed levels.
His colleague Nick Peters, a multi-asset portfolio manager of Fidelity International, added:
We’re broadly positive on UK equities relative to other markets, now that Brexit negotiations are behind us and the vaccine roll-out has been stronger than expected. Whilst we’re not out of the woods yet, economic data has surprised to the upside this year, and a strong domestic economy should particularly benefit the FTSE 250.
10:50 AM
Market update: FTSE pushes higher
London's blue-chip index has continued to rise after breaking through the 7,000 mark at the open this morning.
Banks are among the top risers, with Barclays and NatWest jumping 2.3pc and 2.2pc respectively.
Travel stocks are also performing strongly. British Airways parent IAG is currently trading 2.3pc higher.
European market data - Bloomberg
10:23 AM
MusicMagpie set for £208m London float
MusicMagpie has confirmed plans to float on the stock market in a deal valuing the business at around £208m.
The Stockport-based "recommerce" site, which specialises in re-selling used technology such as smart phones and games consoles, has said it will list on the London Stock Exchange's junior AIM index.
It said it expects to raise £15m for the business through the sale of new shares as part of the listing, while existing shareholders are also expected to secure £95 million through a share sale.
The company, which was founded in 2007, said it plans to use the funds to help expand its burgeoning smartphone rental business.
MusicMagpie revealed that it posted revenues of £153.4m for the year to November, with earnings of £13.9m.
The listing plans come after a raft of e-commerce floats in London in the past year, with well-received IPOs for the likes of The Hut Group, Moonpig and InTheStyle.
Steve Oliver, chief executive officer and co-founder of musicMagpie, told the PA news agency that the business has had an "excellent" reception from potential investors ahead of the listing.
10:01 AM
EU likely to drop AstraZeneca jab
UVDL
The EU “most probably” won’t renew contracts for Covid vaccines with AstraZeneca and Johnson & Johnson as it prioritises other types of jabs, according to a French government minister.
Bloomberg has the details:
The comments follow the European Commission’s announcement this week that it’s in talks with Pfizer and BioNTech for as many as 1.8 billion additional vaccine doses through 2023.
Pfizer’s shot is an mRNA vaccine, and the commission has said it will focus on that technology in its planning. The vaccines from both J&J and Astra use an adenovirus to build immunity.
“The decision has not been taken as of today, but I can tell you we haven’t initiated discussions with AstraZeneca and Johnson & Johnson about another contract, whereas we have already started discussions about contracts with BioNTech, Pfizer and Moderna,” Agnes Pannier-Runacher, France’s industry minister, said Friday on BFM Television.
On Wednesday, Commission President Ursula von der Leyen said the EU would focus on technologies that have “proven their worth,” such as mRNA shots, comments that were echoed by EU Health Commissioner Stella Kyriakides in a Bloomberg Television interview.
09:40 AM
Exclusive: Sunak's 'super deduction' will not help swathes of companies
Sunak
Rishi Sunak's new "super deduction" tax break on investment will fail to help swathes of companies because they hire much of their machinery rather than buying it, ministers have been warned.
My colleague Tom Rees reports:
Construction and IT companies will be among businesses to miss out on tax relief that the Chancellor is hoping will kickstart business investment after the pandemic, industry leaders have said.
The Finance and Leasing Association and the British Vehicle Rental and Leasing Association (BVRLA) are urging officials to rethink the policy so that more companies can benefit. The groups have sent letters highlighting their concerns to Treasury ministers and Kwasi Kwarteng, the Business Secretary.
BVRLA bosses have also raised the issue in meetings with officials, where they warned the tax break is only likely to benefit a limited number of businesses in its current form.
The super deduction was unveiled at the Budget as Rishi Sunak’s flagship policy to boost business investment.
Companies spending money into new plant and machinery can deduct 130pc of the investment from their taxable income, slashing tax bills by 25p for every £1 spent.
Europe’s auto sales soared last month from a depressed level a year ago, making up for a dismal start to the year even as virus-related restrictions persisted in key markets.
New car-registrations rose 63pc in March, the European Automobile Manufacturers’ Association said Friday. The gains erased an early-year decline to leave sales up 0.9pc for the quarter.
While automakers are benefiting from easy comparisons to a year ago, when countries were locking down to contain the spread of Covid-19, last month’s sales stack up well even relative to pre-pandemic. The 1.39 million vehicles registered was the highest since June 2019.
Carmaker shares lifted on sales regaining momentum and Daimler AG reporting better-than-expected earnings for the first quarter. The Mercedes-Benz maker cited strong sales in all major regions, not just China and the US. [via Bloomberg]
08:56 AM
FTSE rally represents 'massive milestone'
Breaking through 7,000 is a big moment for London's blue-chip index which has lagged rivals in recent years.
Russ Mould, investment director at AJ Bell, says:
This represents a massive milestone in recovering from the terrible pandemic and shows how investors’ confidence has completely changed since just over a year ago.
The market was understandably shocked as the coronavirus gripped the world but in true investor style it has quickly focused on the future and the ability for corporate earnings to recover.
FTSE 100 miners and oil producers were in demand on Friday following new data that showed China’s economy jumped by 18.3pc in the first quarter of 2021, led by strong industrial output. Household consumption is expected to improve as the year progresses.
The key issue from the market’s perspective is how quickly stimulus measures will be withdrawn in the country. Officials say it will be a gradual process but not everyone trusts China’s authorities to be true to their word.
08:28 AM
KBC eyes exit from Irish market
Bank of Ireland
KBC Bank looks set to leave the Irish market after announcing the potential sale of its performing loan book to Bank of Ireland.
Discussions are at an early stage but if the sale goes ahead it would "ultimately" lead to KBC Bank Ireland exiting the market, its chief executive said.
KBC has entered into a Memorandum of Understanding (MoU) with Bank of Ireland, which could lead to "a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland's performing loan assets and liabilities".
The move has raised fears about lack of competition in the market as it would leave just Bank of Ireland and AIB as the country's main lenders.
KBC said its remaining non-performing mortgage loan portfolio, which is not part of the MoU, is currently being analysed whereby KBC Group is reviewing its options to divest the NPL portfolio.
In a joint statement, the banks said: "The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as obtaining all appropriate internal and external regulatory approvals."
08:09 AM
FTSE miners, banks and oil companies 'will power the recovery'
city of london
Commenting on the FTSE's rally, Adam Vettese, analyst at investment platform eToro, says:
While the FTSE 100 continues to be a laggard in international terms, the fact it has broken through the 7,000 mark for the first time since February last year can be read as a sign of cautious optimism among investors.
The UK’s blue-chip index is now more than 40pc higher than it was at the worst of last year’s sell-off, although growth has stagnated in the past week or so.
With the vaccine roll-out fairly advanced and talk positive about the future state of the economy, investors are once again seeing opportunity rather than threat in UK shares.
The FTSE 100 is often derided for its ‘old world’ constituents, but it is these miners, banks, oil companies and airlines that will power the recovery and investors are beginning to wake up to that.
Add in the fact that UK shares are looking relatively cheap when compared with other developed markets, and the investment case becomes quite compelling.
07:49 AM
'More turbulence is expected'
Commenting on the Chinese GDP numbers, Lynda Zhou, portfolio manager at Fidelity International, says:
The market saw a significant correction after Chinese New Year and the investment trend has changed considerably. With the recovery happening as expected, the market anticipates that monetary policy will be normalised, and liquid margins tightened.
Overall, market sentiment remains fragile as it tends to react slowly to positive news and quickly to negative news. Those high valuation stocks with previous strong performance have seen a significant correction. In contrast, cyclical stocks have benefited from the rapid improvement in business performance and will outperform the market.
Looking forward, turbulence in the stock market is expected amid an environment where inflation is expected to rise. The rollout of vaccine, economic recovery and policies remain the three major drivers that lead the market.
07:28 AM
Ocado eyes driverless deliveries with £10m investment
ocado
Ocado has said it will invest £10m in driverless vehicle start-up Oxbotica as the online supermarket looks at the potential for automated deliveries to customers.
The company said it will look at the use of Oxbotica's autonomous vehicle software for operations at its warehouse as well as "last-mile deliveries and kerb-to-kitchen robots".
The cash injection comes as part of a £34m Series B funding round, led by BP Ventures, in the Oxford-based firm.
Ocado said the partnership will see the two businesses collaborate to integrate Oxbotica's autonomy software platform into a variety of vehicles that can be used by the FTSE-100 business.
It said it will build teams of engineers within its existing advanced technology division to work with Oxbotica on potential ways of using its software.
07:12 AM
FTSE 100 breaks 7,000
The FTSE 100 has broken 7,000 for the first time since February 2020 as global stocks continue to rally on rebound hopes.
European market data - Bloomberg
06:46 AM
Retail sales bounce
In a sign that China's crucial consumer sector is getting back up to pace, the figures this morning showed retail sales surged in March, bringing first-quarter growth to 33.9pc as life largely returned to normal.
Industrial output rose a less-than-estimated 24.5pc in the quarter.
The figures come days after officials announced that exports - and particularly imports - had rocketed in March.
But Oxford Economics' head of Asia economics Louis Kuijs cautioned that "a full rebound in household spending hinges on convincing vaccination and further improvements in labour market conditions".
06:28 AM
Record surge after historic dip
The big data today is all around China, where the economy expanded at a record pace in the first quarter as the it continued its rapid recovery from coronavirus.
The 18.3pc explosion in gross domestic product was the fastest pace since quarterly records began three decades ago, but came off a historic contraction in 2020 during the depths of the pandemic, AFP reports.
It was also slightly short of forecasts by economists.
While the disease first emerged in central China in late 2019, the country was also the quickest to bounce back after authorities imposed strict control measures and consumers stayed home.
"The national economy made a good start," National Bureau of Statistics spokeswoman Liu Aihua told reporters on Friday.
The sharp spike was partly due to "incomparable factors such as the low base figure of last year and increase of working days due to staff staying put during the Lunar New Year" holiday, said Liu.
06:26 AM
China's record quarter
Good morning. China's economy expanded at a record pace in the first quarter as the country continued its rapid recovery from last year's pandemic-fuelled slump, official data showed on Friday.
Meanwhile the FTSE 100 is within touching distance of 7,000 points, having closed at a 14-month high on Thursday.
5 things to start your day
1) Part-time rail commuting regime revealed: The new system of flexible rail season tickets is designed to entice commuters back to city centres as they split their time.
4) Hut Group aims to become the new Ocado: FTSE 250 retailer-cum-tech company pins its hopes on an e-commerce platform it sells to other retailers, but growth has disappointed.
5) Mercedes reveals all-electric EQS 'Tesla killer': Mercedes has been slower than rivals in moving into low-emissions vehicles but the EQS is expected to address any fears it is lagging behind.
What happened overnight
A batch of Chinese and US economic data helped underpin global stocks near record highs on Friday, as investors priced in a solid global recovery from the coronavirus-induced slump.
In Asia, markets were largely steady after China reported a sharp acceleration in first-quarter growth, though the reading slightly undershot expectations while retail sales bounced strongly last month.
Shanghai shares dipped 0.2pc while the Chinese yuan eased.
Analysts said the China data did little to change expectations of a strong recovery and further policy tightening to curb any excesses in property investments.
MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.2pc while Japan's Nikkei was almost flat.
MSCI's broadest gauge of world stocks ticked down 0.05pc by mid-Asian trade following 0.89pc gains the previous day to a record high.
Coming up today
Corporate: Ashmore (Trading update)
Economics: Trade balance, consumer price index (EU), industrial production, retail sales, GDP (China)
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