Summary:
- U.K. retail sales rise despite pressure
- Consumer confidence hits new low, GfK says
-
WPP revenue dips on weak Europe results
Investing.com -- British stocks traded slightly higher on Friday as the holiday-shortened week neared its end, amid ongoing tariff uncertainty and an unexpected rise in U.K. retail sales for March.
The blue-chip index FTSE 100 rose 0.1%, while GBP/USD dropped about 0.1% against the dollar to around 1.3330.
Meanwhile, DAX in Germany climbed 0.8% and the CAC 40 in France rose 0.5%.
Retail sales climb despite consumer pressure
Data published by the Office for National Statistics on Friday showed that U.K. retail sales rose by 0.4% in March, slowing from a revised 0.7% increase in February.
The gain came despite ongoing pressure on consumer confidence amid recent tariff tensions tied to U.S. President Donald Trump.
Economists had forecast a 0.3% decline in sales, which mainly reflect goods purchases and are reported without adjusting for inflation.
U.K. consumer sentiment sinks on cost, trade worries
According to research group GfK’s latest data, consumer sentiment in the U.K. dropped to its lowest level in over a year in April, as households contended with rising costs and renewed concerns over the economic impact of U.S. trade policies.
The index fell by four points to -23, the weakest reading since November 2023, reflecting pressure from domestic tax hikes, soaring household bills, and fears that tariffs from the U.S. could spark another inflation surge.
China reportedly considers easing tariffs on U.S. goods
Bloomberg on Friday reported that Chinese authorities are considering removing certain U.S. products from the steep 125% import tariffs.
The move could help reduce some of the friction between the world’s two biggest economies.
UBS sees GBP/USD at 1.39 by 2026
UBS on Thursday revised its outlook for the GBP/USD, attributing the revision to the pound’s recent strength and a broader decline in the dollar following the U.S. administration’s Liberation Day announcements.
The firm projected that the currency pair could reach 1.39 by the close of March 2026.
Company updates
U.K.-based advertising giant WPP PLC (LON:WPP) posted a drop in revenue for the first quarter, with underperformance in its European segment dragging down overall results.
Despite the recent introduction of new U.S. tariffs, the company noted that it has not observed any significant reaction from its clients so far.
In its trading update, the company reported that revenue, excluding pass-through costs, declined by 2.7% year-over-year to £2.48 billion ($3.3 billion), missing the £2.54 billion consensus forecast from analysts polled by Bloomberg.
Shares of Mobico Group PLC (LON:MCG) plunged over 40% on Friday after the company revealed it had reached an agreement to sell its North American school bus business to infrastructure investor I Squared Capital for an enterprise value of up to $608 million.
The UK-based transport operator is using the sale as part of its strategy to reduce debt and redirect capital toward higher-growth segments like ALSA.
Greencoat UK Wind PLC (LON:UKWG) reported a modest decrease in its Q1 2025 NAV, which fell to 150p per share, marking a 0.8% decline from the previous quarter.