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European stocks were higher on Friday morning with Peel Hunt shares up as it announced a ‘strong start’ to its current financial year; meanwhile average UK house prices reached a record high in August. The FTSE 100 index opened up 22.84 points, 0.3%, at 9,239.71. The FTSE 250 was up 67.35 points, 0.3%, at 21,542.03, and the AIM All-Share was up 3.47 points, 0.5%, at 765.47. The Cboe UK 100 was up 0.2% at 926.48, the Cboe UK 250 was up 0.3% at 18,834.57, and the Cboe Small Companies was flat at 17,047.78. UK retail sales accelerated ahead of expectations in July following continued good weather, but fell short of consensus on an annual basis, the Office for National Statistics reported on Friday. Total retail sales volumes are estimated to have risen by 0.6% in July, accelerating from an increase of 0.3% in June and comfortably beating an FXStreet-cited consensus for 0.2% growth in July. Sales volumes improved 1.1% over the year to July, accelerated from 0.9% growth in the year to June, but falling short of an FXStreet-cited consensus for 1.3% growth. ‘The sun came out, but shoppers stayed cautious. Retail sales fell for the first time in four months, by 0.6%, with early gains from the Euros, warm weather and popular cultural moments like the Oasis tour, fading by mid-month,’ commented Alice Crowley, managing director in Accenture’s Retail Practice. The main drivers of this fall was a dip in spending at food and toy stores, on sports equipment, and at household goods stores. However, clothing in particular, was bright spot- rising by 2.5% over the month and 5.5% over the year...But spending on essentials and food slowed overall- a sign that many households are still keeping a close eye on their budgets. ‘Many retailers will be feeling the pinch as the Autumn season kicks off. The continued squeeze from rising wage bills and business rates are putting pressure on margins, and the upcoming Autumn budget could mean further uncertainty in their cost base.’ In European equities on Friday, the CAC 40 in Paris gained 0.2%, while the DAX 40 in Frankfurt was slightly higher. The pound was quoted up at $1.3457 early on Friday in London, compared to $1.3432 at the equities close on Thursday. The euro stood higher at $1.1672, against $1.1641. Against the yen, the dollar was trading down at JP¥148.23 compared to JP¥148.74. The average UK house price rose for the third consecutive month in August to a record high, though the rate of growth slowed slightly from the month prior, Halifax reported on Friday. The Halifax house price index found that the average UK house price increased by 0.3% to a new record high of £299,331, slowed slightly from a 0.4% growth in July to £298,237 and slowed against the 0.6% rise reported for August 2024. It was a sharper growth in August than the FXStreet-cited consensus of 0.1%. The average house price is now 2.2% higher over the past year, easing from a 2.5% annual growth rate in July, but above the market consensus of 2.0%. Ashmore Group fell 7.3% at London’s market open. The emerging markets-focused asset manager said net outflows totalled $5.8 billion in the year to June 30, abating from $8.5 billion reported a year ago. Ashmore put this down to a fall in redemptions. Gross redemptions totalled $12.3 billion, reduced from $15.7 billion the prior year. Subscriptions edged slightly lower to $6.5 billion from $7.2 billion. Assets under management declined 3% to $47.6 billion at June 30 from $49.3 billion 12 months earlier. The net outflow was slightly offset by a $4.1 billion boost from a ‘positive investment performance’. Ashmore’s pretax profit declined 15% on-year to £108.6 million from £128.1 million. Revenue fell 24% to £144.4 million from £189.0 million. At the other end, Gear4music jumped 11%. The York, England-based online retailer of musical instruments and equipment said revenue for the first quarter that ended June 30 was 27% higher than the year before with traction continuing in the second quarter to date. As a result, Gear4music has ‘sufficient confidence to once again increase its expectations for the group’s financial performance’ for the year ended March 31, 2026. The firm did not on Friday provide its upgraded guidance figures, but noted a current company-compiled consensus for financial 2026 put revenue at £155.8 million, pretax profit at £3.0 million, and earnings before interest, tax, depreciation and amortisation at £11.3 million. This compared to £146.7 million in revenue, £1.6 million in pretax profit, and £10.0 million in Ebitda in financial 2025. Peel Hunt gained 11%. The London-based investment bank and stock broker said it has made a ‘strong start’ to the current financial year, which runs to the end of March. The firm said it has acted on ‘a number of substantial [mergers & acquisitions] transactions’ in its Investment Banking division. Peel Hunt said it has seen nascent equity capital markets activity in recent weeks, where it has supported clients on equity raises and block trades. It said revenue in the Execution Services business is ‘encouraging and materially ahead’ of the prior year. As a result, it expects to deliver full-year results ahead of expectations. In Asia on Friday, the Nikkei 225 index in Tokyo rose 1.0%. In China, the Shanghai Composite improved 1.2%, while the Hang Seng index in Hong Kong advanced 1.4%. The S&P/ASX 200 in Sydney closed up 0.5%. In the US on Thursday, Wall Street ended in the green, with the Dow Jones Industrial Average rising 0.8%, the S&P 500 also improving 0.8% and the Nasdaq Composite gaining 1.0%. The yield on the US 10-year Treasury was quoted at 4.17%, narrowing from 4.20%. The yield on the US 30-year Treasury was quoted at 4.86%, trimmed from 4.90%. Brent oil was quoted lower at $66.70 a barrel early in London on Friday from $67.02 late Thursday. Gold was quoted slightly higher at $3,548.66 an ounce against $3,543.56. Still to come on Friday’s economic calendar, Irish unemployment data at 1100 BST, followed by US nonfarm payrolls figures at 1330 BST. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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