Britain’s blue-chip stock index opened higher on Friday, on course to log its fourth consecutive quarterly gain, after stronger-than-expected local economic growth numbers offset jitters ahead of US inflation data.
The FTSE 100 added 0.5%, with energy and financial stocks in the lead, and the midcap FTSE 250 was up 0.1%, as of 0716 GMT.
Britain’s economy grew 0.7% in the first three months of this year, compared with the previous quarter, and came in above an estimate of 0.6% growth, official figures showed.
The figures came in as Britons are set to vote on July 4 in the parliamentary elections, which opinion polls suggest will see Labour Party leader Keir Starmer replace Conservative Prime Minister Rishi Sunak.
“With less than a week to go, the UK electorate aren’t necessarily going to feel better off because of these numbers,” said Rebecca Maclean, a UK equities investment director at abrdn.
“There’s a low level of uncertainty about the outcome. We can look towards more political stability in the UK market.”
The keenly awaited US personal consumption expenditure (PCE) numbers are due later in the day.
A growing view of cooling US inflation prompting the Federal Reserve to ease borrowing costs this year has supported global stocks.
London’s FTSE 100 slips as investors eye US, UK economic data
UK energy shares climbed more than 1%, as expectations of a rate cut by the US Fed buoyed oil prices.
Financials also edged higher, with banks gaining 0.7%, while the investment banking and brokerage sector inched 0.8% higher.
Shares of sportswear brand JD Sports Fashion lost 6.1% and sank to the bottom of the FTSE 100 after US peer Nike forecast a surprise revenue fall in 2025 on Thursday.
Comments