London pre-open: Stocks to nudge down after retail sales, consumer confidence data

(Sharecast News) - London stocks were set to nudge lower at the open on Friday following big gains a day earlier, as investors mulled the latest reading on UK consumer confidence and a stagnation in retail sales. The FTSE 100 was called to open around four points lower, following a 1.9% surge on Thursday.

Figures released earlier by the Office for National Statistics showed that retail sales were flat in February, following upwardly-revised 3.6% growth the month before. This was ahead of expectations for a 0.4% decline.

ONS senior statistician Heather Bovill said: "There was a growth in clothing, which rebounded after recent falls as people invested in the new season's collections, as well as department stores.

"However, these were offset by falls in fuel sales, possibly affected by rising prices, and a reduction in food sales."

Investors were also digesting a survey from GfK, which revealed that consumer confidence stalled in March.

The latest consumer confidence index from GfK was -21, unchanged on February, when it fell two points. It is, however, an improvement on March 2023, when the index was -36.

Within that, expectations for personal finances over the next 12 months rose two points from 0 in February.

The forward-looking economic situation measure was also higher, albeit by just one point, at -23.

In contrast, the major purchase index shed two points to -27.

Joe Staton, client strategy director at GfK, said: "Consumer confidence stalled in March.

"The improved personal finance measure is encouraging, because it's the first positive and the highest score since December 2021.

"But is there a note of worry this month? Look back to last year and it's clear the improvements in consumer confidence seem most months since January 2023 have vanished.

"Are we temporarily on pause, or are consumers about to press reverse? In the run-up to the general election, these are important questions for the future health of the economy."

In corporate news, pub chain Wetherspoons said trading continued to improve from the impact of the Covid pandemic, with like-for-like sales up 5.8% in the seven weeks to March 17 after a sharp jump in first-half pre-tax profit.

Earnings for the 26 weeks to January 28 rose to £36m from £4.6m a year earlier. Revenue surged 8% to £991m.

Elsewhere, Jefferies said that KKR Dark Aggregator sold 19.4m shares in cybersecurity firm Darktrace in a placing.

The shares were placed at 425p each, which is a discount of 7.8% to the closing share price on Thursday.

KKR Dark Aggregator is a technology growth fund advised by US private equity firm KKR.