Alphabet beats estimates while UK retail sales come in stronger than feared
Alphabet earnings help stocks on their way
The Mag7 might not be the rockstars they were last year, but strong earnings from one of their number can still help buoy risk appetite. Alphabet’s latest numbers provided a boost, since the core business remains solid, though like so many other businesses the impact of tariffs has yet to come through. The stock responded positively, though in relatively muted fashion, since the prospect of a breakup of the group still looms large.
Stocks have enjoyed a much better week overall as talk of firing Powell has receded and the US strikes a more conciliatory tone with China. But with so many companies warning of tougher times to come, the current bounce could be just one of those famed 'bear market rallies', which stage a huge rebound before giving way to bigger losses as bad news begins to bite.
UK shoppers keep spending
Good weather meant that British consumers defied expectations of a downturn in retail sales in March, but April’s data could begin to tell a different story as tariffs begin to bite. All data from before Trump’s ‘Liberation Day’ has essentially been discounted by markets, so today’s figures will not leave much of an impression on sterling.
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