(Alliance News) - Friday marked an upbeat end to a rocky week, with optimism growing over the global economic recovery following some positive data out of the UK and Germany.
The FTSE 100 index surged 65.76 points, or 1.0%, to 6,740.59 - ending up 0.5% since the start of the week.
The FTSE 250 ended up 208.89 points, or 1.0%, at 21,486.73 on Friday, gaining 0.3% over the course of the week. The AIM All-Share closed up 7.91 points, or 0.7%, at 1,192.50, and down 0.4% for the week.
The Cboe UK 100 ended up 1.0% at 672.02, the Cboe UK 250 closed up 1.1% at 19,218.82, and the Cboe Small Companies ended up 0.9% at 13,906.28.
In European equities on Friday, the CAC 40 in Paris ended up 0.6%, while the DAX 30 in Frankfurt gained 0.9%.
"Today's UK retail sales numbers for February bode well for a big rebound in consumer demand as we head into Q2, while a better-than-expected German Ifo number also points to rising optimism, about a global economic recovery even as Europe remains stuck in the mud spinning its reopening wheels," said Michael Hewson, chief market analyst at CMC Markets.
After a disappointing inflation reading earlier in the week, the UK economy got some upbeat news from the retail sector on Friday.
On a monthly basis, UK retail sales grew 2.1% in February, rebounding from a fall of 8.2% in January. The month-on-month print was in-line with market consensus. On an annual basis, retail sales fell 3.7% in February slowing from a decline of 5.9% in January but missing market consensus for a 3.5% decline.
Meanwhile, in Germany, the Munich-based Ifo institute said its closely-watched business climate index jumped to a more-than-forecast 96.6 points this month from a revised February reading of 92.7. Analysts had forecast a gain in March to 93.2 from a previously estimated 92.4 in February.
There was some good news for the EU's lagging vaccine programme after the bloc's drugs regulator said vials of Pfizer/BioNTech's coronavirus vaccine can be kept at normal freezer temperatures for short periods instead of in ultra-cold storage.
The EU's vaccine effort has been marred by supply issues, with a spat between the bloc and AstraZeneca continuing to rumble on.
European Commission president Ursula von der Leyen warned AstraZeneca that it must "honour" its vaccine contract with the bloc before exporting doses elsewhere in the world, though she acknowledged that worldwide supply chains needed to remain "intact" for vaccine production, while some European leaders appeared optimistic that the UK and EU could soon resolve their dispute over supplies.
Amid optimism over the global economic recovery, Hewson highlighted: "Energy and basic resource stocks are amongst the primary gainers with Anglo American, Rio Tinto, Antofagasta and Glencore leading the way."
Glencore shares closed up 6.5%, while Antofagasta advanced 4.4%, Anglo American 4.3% and Rio Tinto 3.4%.
Finishing at the top of the FTSE 100 was Smiths Group, surging 6.9% after lifting its dividend following a "robust" performance in the first half.
For the half year to January 31, the engineering firm's revenue was down 7.3% to GBP1.15 billion from GBP1.24 billion the year before, but pretax profit jumped by 83% to GBP84 million from GBP46 million.
Smiths Group raised its interim dividend 6.4% to 11.7 pence from 11.0p prior. The increased payout, the company said, reflects its confidence in the medium and longer term prospects.
Renishaw ended up 3.9%. The engineering and scientific technology firm expects annual profit to more than double on strong revenue growth.
The company said it has seen "good momentum" recently. It flagged strong demand in the semiconductor capital equipment and consumer electronics markets.
Renishaw expects annual revenue to land between GBP540 million and GBP570 million in the year ending June, potentially up 12% from GBP510.2 million. Adjusted pretax profit is expected to come in between GBP105 million and GBP125 million, more than doubled from GBP48.6 million.
At the top of the mid-cap FTSE 250 was Oxford Instruments, closing up 12% as it expected to post annual earnings growth following "good progress" in the second half of its financial year.
The Abingdon, England-headquartered company, which makes products, systems and tools for research and industry, expects to post revenue "marginally ahead" of the previous year's GBP317.4 million. Adjusted operating profit is expected to land between GBP55 million and GBP57 million, so at best, a 13% rise from GBP50.5 million.
Cineworld rebounded from Thursday's 7.6% slide to rally 8.4% on Friday amid hopes for a swift UK economic recovery. The movie theatre operator on Thursday posted a USD3 billion loss in 2020, a year battered by major film delays, Covid-19 restrictions and prolonged closures of its cinema chains globally.
Stocks in New York were in the green at the London equities close, with the DJIA up 0.6%, the S&P 500 index up 0.8%, and the Nasdaq Composite up 0.5%.
The US dollar fell back due to Friday's risk-on mood.
The pound was quoted at USD1.3795 at the London equities close Friday, higher compared to USD1.3727 at the close on Thursday. The euro stood at USD1.1796 at the European equities close, against USD1.1778 at the same time on Thursday.
However, the greenback did manage to notch gains against the safe haven yen. Against the yen, the dollar was trading at JPY109.60 compared to JPY109.15 late Thursday.
In commodities, Brent oil was quoted at USD64.35 a barrel at the London equities close Friday, rising from USD61.61 late Thursday after an attempt to refloat a megaship blocking Egypt's Suez Canal failed.
The MV Ever Given, which is longer than four football fields, has been wedged diagonally across the entire canal since Tuesday, shutting the waterway in both directions. The blockage has caused a huge traffic jam for more than 200 ships at either end of the 193-kilometre long canal and major delays in the delivery of oil and other products.
Gold was quoted at USD1,733.46 an ounce at the London equities close Friday, firm against USD1,732.44 at the close on Thursday.
Monday's UK corporate calendar has full-year results from ten pin bowling operator Ten Entertainment and interims from Brighton Pier owner Brighton Pier Group.
The economic calendar on Monday has UK mortgage approvals at 0930 BST and Irish retail sales at 1100 BST. Daylight savings time comes into effect across the UK and Europe over the weekend.
By Lucy Heming; lucyheming@alliancenews.com
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