"With the vaccine roll-out fairly advanced and talk positive about the future state of the economy, investors are once again seeing opportunity rather than threat in UK shares," said Adam Vettese, an analyst at multi-asset investment platform eToro.
U.S. stock futures pointed to a slightly lower open, with S&P futures down 0.06% and Nasdaq futures down 0.2%
Overnight, Asian markets had tracked a path similar to Europe's. MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.4%, with Shanghai shares adding 0.8% and Japan's Nikkei up 0.1%.
Driving the move was Chinese data showing record 18.3% growth in the first quarter, though the reading slightly undershot expectations. Retail sales bounced strongly last month.
"We remain focused on a China-led rebound steadily helping the Asia-Pacific region," said Sebastien Galy, senior macro strategist at Nordea Asset Management.
"As the U.S. economy and then European economies open up, it should further help Asian exports. This should support Emerging Market and APAC equities as well as China equities and fixed income."
Despite the punchy GDP number, gains were tempered by the view that Beijing will act to rein in the brisk expansion later in the year to stop the economy overheating.
"Regulators might make further efforts to cool down the property market and control domestic leverage. Fiscal discipline might also be strengthened, leading to deceleration in local government financing and infrastructure investment," said Chaoping Zhu, global market strategist at J.P. Morgan Asset Management in Shanghai.
The strong Chinese data had followed similarly upbeat numbers out of the United States overnight. Retail sales rebounded 9.8% in March, pushing the level of sales 17.1% above its pre-pandemic level to a record high.
The brightening economic prospects were underscored by other data, including first-time claims for unemployment benefits, which tumbled last week to the lowest level since March 2020.
All of which helped oil prices push on, hitting one-month highs thanks to the economic data and higher demand forecasts from the International Energy Agency (IEA) and OPEC.
Brent futures were last up 0.3% at $67.12 per barrel. U.S. crude was 0.2% higher at $63.59 per barrel, both on course for their first substantial weekly gains in six.
Despite the strong data, U.S. bond yields dropped, in part driven by buying from Japan, which began a new financial year this month. The 10-year U.S. Treasuries yield hovered near its five-week low of 1.589%.
In the currency market, lower U.S. yields were a drag on the dollar overnight, although the dollar index had recovered to trade flat early in the European session.
The euro was flat at $1.1967, having hit a six-week high of $1.19935 overnight. The pound was down 0.3% at $1.3740.
Gold also fell from a seven-week high of $1,769 per ounce to trade at $1,763.70.
(Editing by Kim Coghill, Larry King)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.