Europe open: Stoxx hits fresh highs as UK exits recession

10th May 2024 08:04

(Sharecast News) - European shares hit fresh record highs on Friday as news that the UK had officially exited recession in the first quarter boosted sentiment.

The pan-European Stoxx 600 index was up by 0.56% at 519.65, just below the new record of 519.67. Britain's FTSE 100 also hit a record high and is almost 9% up on the year to date, while Germany's DAX also continued to make strong gains.

GDP grew by 0.6% in the first quarter of this year, ahead of expectations for 0.4% growth. This means the UK is no longer in recession following two consecutive quarters of declines at the end of last year, when GDP shrank by 0.1% in the third quarter and 0.3% in the fourth.

Output in the services sector grew 0.7%, while production sector output grew 0.8% and the construction sector saw a 0.9% fall.

''The UK economy has jogged out of recession, picking up pace more than expected. It's clear a corner has been turned, as intense cost-of-living pressures subside, and consumers and companies eye lower borrowing costs on the horizon," said Hargreaves Lansdown analyst Susannah Streeter.

"The 0.6% growth registered in the first three months of the year was higher than forecast, with the green shoots seen in January and February flowering into a stronger growth spurt in March."

In equity news, Getinge shares slumped after the US Food and Drug Administration urged healthcare providers not to use some of its heart devices amid concerns they still pose a risk to users despite a previous recall.