Proactive Investors -
- FTSE 100 up 47 points
- Barclays (LON:BARC) and Pearson (LON:PSON) lead risers, up 4%
- Lloyds (LON:LLOY), NatWest (LON:NWG) and other lenders jump
- Ocado (LON:OCDO) slips 4%
Pound picks up on housing market upturn
The pound has lifted higher on Friday as the housing market continues to pick up, with stronger-than-expected inflation in the Eurozone also providing a boost.
Sterling lifted around 0.14% against the US dollar at US$1.26, attempting to recover some of the 0.7% slips suffered in the year-to-date.
Meanwhile, the euro held flat against the pound at around 85p.
In crypto, Bitcoin (BTC) has shaken off Thursday's slight wobble, with the benchmark cryptocurrency's mega-rally continuing with a 1.6% jump on Friday to US$62,170.
Bitcoin’s week-on-week performance is over 20% in the green, with the world’s largest cryptocurrency penning 45% worth of gains over the whole month of February.
This represents one of the most bullish months on record, and the strongest monthly gain since December 2020.
Zara to reopen stores in Ukraine
Zara owner Inditex (BME:ITX) has revealed it is planning to reopen stores in Ukraine in April, over two years after Russia invaded the country.
Some 20 stores of the fast-fashion giant are scheduled to reopen on April 1, with three of the sites opening under the Zara brand.
Locations in Kyiv will open first, with the group targeting reopenings of around 50 stores, albeit without a time limit attached.
“The group’s priority continues to be the safety of its employees and customers,” Inditex said in a statement.
The company had 72 stores in Ukraine and 558 in Russia as of 2019, however, in 2022 it agreed to sell the later set of stores to Daher Group, the UAE-based firm.
Ocado continues to shed value after M&S fallout
Ocado shares continued to tumble on Friday, falling 3% and leading the FTSE 100 fallers, as it continues to suffer the fallout of its breakdown in partnership with M&S.
The grocery technology company said it may need to sue Marks and Spencer Group PLC (LON:MKS) over a dispute that is preventing a payment to the online grocery specialist after their Ocado.com joint venture failed to meet performance targets.
Sophie Lund-Yates at Hargreaves Lansdown (LON:HRGV) said: "There will be real concerns about what the cost of litigation could be for both parties – but more importantly, what the souring of relations means for the future of M&S food.
"The Ocado deal was a way for M&S to create an online footprint, with customers encouraged by the broad breadth of options available by the combination of Ocado.
"There will now be questions about who the next partner might be for Ocado, and that could leave somewhat of a hole in M&S’ food strategy."
Marks and Spencer shares are reacting better to the news, with shares holding flat on Friday after having dropped around 3% on Thursday.
Hopes of early Eurozone rate cut dashed
An early Eurozone rate cut is looking almost impossible after inflation in the single currency region failed to slow by as much as economists had predicted.
The Eurozone's consumer price index fell to 2.6% in February, improving on January's figure of 2.8%, but failed to beat expectations of 2.5%.
Similarly, core inflation, which doesn't include food and energy prices, fell month-on-month from 3.3% to 3.1% but failed to meet estimates of 2.9%.
Jack Allen-Reynolds, deputy cheif eurozone economists at Capital Economics, said: "Most policymakers at the ECB have stuck to the view that they need more time to be convinced that inflation will fall sustainably to 2%.
"February’s inflation data will have strengthened that conviction. So an interest rate cut in April – as we have been forecasting – is now not going to happen."