UK stocks, US data in focus as European markets close for May Day

LONDON — The U.K.’s FTSE 100 was set to open higher on Thursday after extending its best run for more than eight years, with most European markets closed for the May 1 holiday.

Europe’s regional Stoxx 600 index ended Wednesday in the green, even after global stocks were rattled by news that the U.S. economy contracted 0.3% in the first quarter. The FTSE 100 closed 0.37% higher — its 13th straight positive session — continuing its longest winning run since late 2016 into early 2017.

Economic sentiment in the region was helped by data showing the euro zone grew by a higher-than-expected 0.4% in the first quarter.

However, April was a weak month for European stocks more broadly, as the impact of U.S. tariff policy weighed. The Stoxx 600 lost 1.2% overall, though this was pared from a 4.2% decline in March.

Earnings have been in focus this week, with European companies warning of price rises and huge uncertainty in their outlooks due to tariffs, while several banks including UBS, Deutsche Bank and Barclays beat expectations.

“Bank stocks overall still look pretty good globally… those growth risks that’s we’re facing now that are centered around the U.S., that should be helping European financials,” Max Kettner, chief multi-asset strategist at HSBC, told CNBC’s “Europe Early Edition” on Thursday.

“Overall it is still time to play defense, particularly in the U.S., the likes of small caps, consumer cyclicals are the ones you really want to avoid, go more toward the defensives, your staples, your health-care, your utilities.”

U.S. stock futures ticked higher early Thursday after Big Tech earnings beats from Meta Platforms and Microsoft.

Stock exchanges in Germany, France and Italy are closed.