Retail rebound as FTSE looks to end the week on a positive note

“An up and down (and up again) session in the US overnight didn’t prevent a relatively calm start for the FTSE 100 on Friday. The index looked to finish the week on a positive note rising 0.4% to 6,251.77,” says Russ Mould, Investment Director at AJ Bell.

“Investors would probably welcome an uneventful day with little new news on a spike in fresh infections in Beijing to create any significant Covid-related nervousness.

“The better than expected bounce back in UK retail spending in May provided some reasons for positivity. However, the month-on-month increase is worth keeping in perspective given April represented the height of the lockdown and spend remains well down on pre-pandemic levels.

“More sobering is the news that UK public debt exceeded GDP for the first time since the early 1960s.

“Although it is very cheap for the Government to borrow right now, the news highlights the challenge it will face in maintaining spending to support businesses and the public at a time of acute need while also making some attempt at balancing the books.

“Oil prices were higher as producers’ cartel OPEC and its allies pledged to hold firm on production cuts and amid signs of returning demand. Gold prices traded at around $1,730 per ounce as Goldman Sachs upped its 12-month target for the precious metal to $2,000.”

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