London’s FTSE 100 was in the green on Friday morning, with equity market sentiment aided by a more tranquil bond market, while the pound got a boost from strong UK retail sales data.

The FTSE 100 index traded up 34.75 points, 0.4%, at 8,774.01. The FTSE 250 was up 45.21 points, 0.2%, at 20,844.87, and the AIM All-Share was up 3.20 points, 0.4%, at 739.94.

The Cboe UK 100 was up 0.5% at 874.16, the Cboe UK 250 was 0.3% higher at 18,336.44, and the Cboe Small Companies was 0.1% higher at 16,561.38.

In Paris, the CAC 40 edged up 0.1%, while Frankfurt’s DAX 40 rose 0.5%.

In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average marginally lower, the S&P 500 down slightly and the Nasdaq Composite up 0.3%.

The yield on the US 10-year Treasury was quoted at 4.51%, narrowing from 4.57% late Thursday. The yield on the US 30-year Treasury was quoted at 5.02%, narrowing from 5.08%.

‘Global bond markets are calmer this morning, which is helping risk sentiment. Although the US’s ’Big, Beautiful, Bill’ has spooked the US Treasury markets this week, rising bond yields seemed to pressurise House Republicans to make cuts to spending, including Medicaid. The budget will now be debated by the Senate, which could be even more of a moderating force, so the cost of this budget could be far less than the current $3 trillion behemoth it currently is,’ XTB analyst Kathleen Brooks commented.

‘US Treasury yields are lower across the curve, and there are also lower yields in Europe. However, the market is worried about the US 30-year yield above 5%, while the UK’s yield is above 5.5%. This is a sign that the market remains wary of lending to the UK while the government still does not have control of public spending, even if the decline in the energy price cap is adding downward pressure on short term yields this morning. The bond market has dictated UK fiscal policy before, and it could do so again now that bond markets remain volatile.’

Sterling was quoted at $1.3472 early Friday, higher than $1.3425 at the London equities close on Thursday. The euro traded at $1.1330 early Friday, up from $1.1285 late Thursday. Against the yen, the dollar was lower at JP¥143.36 versus JP¥143.81.

UK retail sales rose at a faster pace than expected last month, aided by warm weather, numbers on Friday showed.

Retail sales volumes expanded 1.2% in April from March, numbers from the Office for National Statistics showed. They had risen 0.1% in March from February, an expansion downwardly revised from an initially reported 0.4% climb.

The April reading comfortably topped the FXStreet cited consensus, which had pencilled in growth of 0.2%.

‘Food store sales volumes grew strongly in April 2025, which retailers attributed to the good weather,’ the ONS said.

Year-on-year, retail sales surged 5.0% in April, the pace of growth accelerating from 1.9% in March, and beating consensus of 4.5%.

‘UK retail sales had a bumper April according to the latest news from the ONS,’ analysts at Lloyds Bank commented.

‘As ever, mapping from retail sales indicators to broader measures of activity like GDP is tricky so the takeaway is simply that the temporary impetus from good weather and downward revisions to last month mean the strong headline figures likely flatter underlying reality somewhat.’

In Asia on Friday, the Nikkei 225 index in Tokyo perked up 0.5%. In China, the Shanghai Composite was ended down 0.9%, while the Hang Seng index in Hong Kong was 0.1% lower. The S&P/ASX 200 in Sydney closed up 0.2%.

In London, Games Workshop fell 2.8%. It forecast double-digit annual sales and profit growth although it cautioned it sees no repeat of the record licensing revenue achieved in the current financial year.

The Nottingham-based manufacturer of miniature wargames expects pretax profit to be not less than £255 million in the 52 weeks to June 1, up 26% from £203.0 million a year ago.

Jefferies said this is comfortably ahead of market expectations for £240 million.

Core operating profit is estimated at not less than £210 million, up 20% from £174.8 million a year prior, and licensing operating profit of £45 million, up 67% from £27.0 million.

Core revenue in the financial year is estimated to be not less than £560 million, up 13% from £494.7 million a year prior, with licensing revenue up 61% to £50 million from £31.0 million.

Games Workshop said licensing revenue in the period was at a record level but it is not expecting this to be repeated in the next financial year.

‘Licensing remains a significant area of focus,’ it added.

Games Workshop shares went into the trading statement up roughly 60% over the past 12 months.

GSK added 1.0%. It said the US Food & Drug Administration has approved its asthma drug Nucala as an add-on maintenance treatment for adults with chronic obstructive pulmonary disease, or COPD, who have an eosinophilic phenotype.

Elsewhere in London, VH Global Energy Infrastructure added 11%. It plans to begin an ‘asset realisation strategy’ after engaging with shareholders.

The firm had looked to repay ‘the trust’ that shareholders have shown in the four years since its initial public offering.

‘While no one option was favoured by all shareholders, the feedback from the majority of shareholders was a desire for the company to return capital via a sale of the company’s portfolio of assets with a view to maximising value,’ it added.

The realisation requires a change in its investment policy. It would need shareholder approval for this at a general meeting.

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Issue Date: 23 May 2025