Bulletin · Euro Weeks
FTSE 100 up 7 points to 10,616 British American Tobacco leads RELX drops 2.4% Brent crude retreats to $105 9.00 am: London holds near flatline The FTSE 100 was 7 points higher at 10,616 as gains among tobacco and banking shares offset losses across data and technology-linked companies. British American Tobacco led the risers, gaining 1.2%, while Lion Finance, NatWest, Standard Life and Barclays advanced around 1%. RELX fell 2.4%, followed by Compass Group, Sage, London Stock Exchange Group and Experian.
Antofagasta and Glencore also declined. The FTSE 250 added 8 points to 23,894, while AIM gained 1 point to 789. The market remained cautious despite July’s stronger GDP reading.
Brent crude retreated 2.3% to $105.14 after Thursday’s surge, while sterling held near $1.351. 8.05 am: FTSE 100 opens higher as UK growth surprises The FTSE 100 opened modestly higher on Friday after fresh figures showed the UK economy grew much faster than expected in July, though the blue-chip index quickly gave back most of its early gains. London’s leading index was 6 points higher at 10,615 shortly after the open, having started the session at 10,636. The index touched an early high of 10,636, compared with Thursday’s close of 10,608, before slipping back.
UK gross domestic product rose 0.4% in July, following growth of 0.3% in June and comfortably beating City expectations for a flat reading. Global markets have also been under pressure from higher bond yields, with investors increasingly focused on how central banks may respond if energy-driven inflation proves persistent. The FTSE 100 enters Friday after a weak run, with the index still under pressure from the recent sell-off despite the firmer start to the session. 7.00 am: Surprise GDP growth supports London The FTSE 100 is expected to open 17 points higher at 10,625 after the UK economy expanded much faster than economists anticipated in July.
Gross domestic product increased 0.4% month on month, improving from June’s 0.3% rise and beating forecasts for no growth. Services output increased 0.4%, led by administrative and support services, information and communication. Wholesale and retail trade provided the largest drag.
The reading provides a boost for Chancellor John Healey ahead of the 28 October Budget, although rising oil prices and government borrowing costs continue to cloud the outlook. London’s blue-chip index closed 61 points lower at 10,609 on Thursday, marking its fifth consecutive decline. The modestly positive opening call suggests the stronger GDP figures could help interrupt that run.
Brent crude remained above $105 a barrel following further disruption and military activity around the Strait of Hormuz. The elevated price may support BP and Shell but threatens to fuel inflation and increase pressure on the Bank of England to raise interest rates. Asian markets weakened following Wall Street’s fourth consecutive decline.
Australia’s ASX 200 closed around 1.5% lower at 8,688, its weakest level in almost two months, while Japan’s Nikkei 225 finished approximately 2.3% lower near 63,803. South Korea, mainland China and Hong Kong remained open and were also trading lower. On Wall Street, the Dow Jones fell 317 points to 52,064, while the S&P 500 lost 0.6% and the Nasdaq declined 0.7%.
Hotter producer-price inflation and rising Treasury yields unsettled investors ahead of today’s US consumer-price report. Sterling traded around $1.3513, while gold stood near $4,406 an ounce, copper was around $6.48 per pound, and Bitcoin hovered close to $77,100. On the corporate calendar, Berkeley Group is due to issue a trading update, while Integrated Diagnostics Holdings publishes half-year results.
Source: Proactive Investors
