European stocks ended the week in green led by retail stocks amid rising COVID-19 cases.
The STOXX Europe 600, the German Dax and the French CAC 40 were up 0.3%. The FTSE 100 in the UK was up 0.4% and the Swiss Market Index was up almost 0.1%.
Strong domestic demand in Germany is predicted to drive a significant Q3 growth in the economy following a 1.5% increase in Q2 GDP, Reuters reported, citing the country’s finance ministry. The rise in household spending boosted retail sales in May to June following the easing of COVID-19 restrictions and reopening of the economy.
Germany’s producer price index, or PPI, for industrial products soared 10.4% year over year in July to 113.9, following a 1.9% increase in June, the national statistical institute Destatis said. The month’s PPI growth exceeded the month-over-month forecasted growth of 0.8% and marks the highest year-over-year increase since January 1975.
British retail sales lost momentum in July and fell short of market expectations with a sharp decline, driven by a drop in volumes across on-food stores and fuel, the Office for National Statistics said. The UK’s retail sales volumes fell 2.5% month-over-month in July following a 0.5% growth in June. The latest figure missed the consensus of 0.4% growth. On a yearly basis, July retail sales volume grew 5.4% after a 9.7% growth seen in June. The reading also missed the estimated 6% growth.
On the corporate front, Marks & Spencer (MKS.L) jumped 14% after it expects adjusted pretax profit for the fiscal year to surpass the upper end of its previous guidance as the retailer posted a faster growth for the 19-week period to Aug. 14. Revenue rose 29.1% compared with a year earlier, a faster growth than a 4.4% growth in the year-ago period.
Morrisons (MRW.L) was up over 4% after it accepted the 7 billion-pound-sterling ($9.54 billion) acquisition offer by US-based buyout firm Clayton Dubilier & Rice. The offer represents a 60% premium to its share price before takeover interest started in mid-June. Morrisons shareholders are set to vote on the offer at meetings starting Oct. 4.