London open: Stocks rise after better-than-expected UK GDP

28th Jun 2024 08:34

(Sharecast News) - London stocks rose in early trade on Friday as data showed the UK economy grew more than first thought in the first quarter.

At 0835 BST, the FTSE 100 was up 0.7% at 8,236.15.

Figures released earlier by the Office for National Statistics showed gross domestic product grew by 0.7% in the first three months of the year, up from an initial estimate of 0.6% growth.

This follows 0.1% and 0.3% contractions in the third and fourth quarters of last year, respectively.

The figures showed that the services sector expanded by 0.8%, up from an initial estimate of 0.7% growth. Meanwhile, production was up 0.6% in the first quarter, down from 0.8% initially estimated. The construction sector contracted 0.6%.

Paul Dales, chief UK economist at Capital Economics, said the upward revision to Q1 GDP "suggests whoever is Prime Minister this time next week may benefit from the economic recovery being a bit stronger than our already above-consensus forecast".

Still to come, US personal consumption expenditure for May is due out at 1330 BST.

Richard Hunter, head of markets at Interactive Investor, said: "For the most part, this week has been one of subdued moves ahead of the highly anticipated personal consumption expenditures (PCE) print today, which investors are hoping will pave the way for an interest rate cut from the Federal Reserve.

"A rise of 0.1% is expected, annualised to 2.6%, which would be marginally lower than the previous month's 2.7% and some way from the peak of over 7% in 2022. Cooling inflation, alongside data yesterday which showed higher recurring unemployment and a drop in manufactured capital goods add to this narrative, although GDP growth for the first quarter was revised slightly upwards. If the PCE print is hotter than expected, it will reignite concerns of inflation having reaccelerated, while also pushing out the likelihood of an imminent cut."

In equity markets, Tyman gained after Quanex Building Products announced an increased and final recommended cash and share offer the company. The revised proposal includes a special interim dividend of 15p per share in addition to the previous consideration of 240p and 0.05715 of a new Quanex share per Tyman share.

JD Sports tumbled after Nike plunged on Thursday as it cut its full-year guidance and said sales were set to fall 10% during the current quarter. It pointed to soft sales in China and "uneven" consumer trends.

Auction Technology was under the cosh after private equity firm TA Associates offloaded a 5% shareholding in the marketplace tech firm through a share placing with institutional investors.

Outside the FTSE 350, Keywords Studios rallied after saying it had received a sweetened £1.96bn takeover proposal from private equity firm EQT Group that it would be minded to recommend if a firm offer was made.

Market Movers

FTSE 100 (UKX) 8,236.15 0.69%

FTSE 250 (MCX) 20,358.91 0.13%

techMARK (TASX) 4,737.98 0.36%

FTSE 100 - Risers

3i Group (III) 3,078.00p 2.63%

Intertek Group (ITRK) 4,864.00p 2.44%

NATWEST GROUP (NWG) 318.80p 1.76%

CRH (CDI) (CRH) 5,918.00p 1.68%

Shell (SHEL) 2,854.00p 1.44%

Intermediate Capital Group (ICG) 2,232.00p 1.36%

Weir Group (WEIR) 2,022.00p 1.30%

Melrose Industries (MRO) 566.20p 1.29%

HSBC Holdings (HSBA) 697.90p 1.25%

Vodafone Group (VOD) 70.26p 1.21%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 119.50p -5.42%

Frasers Group (FRAS) 867.50p -1.64%

WPP (WPP) 730.40p -1.43%

Smith (DS) (SMDS) 421.40p -1.13%

Fresnillo (FRES) 563.50p -0.27%

Sage Group (SGE) 1,088.00p -0.23%

Auto Trader Group (AUTO) 810.00p -0.20%

Scottish Mortgage Inv Trust (SMT) 888.40p -0.18%

Croda International (CRDA) 4,017.00p -0.07%

Marks & Spencer Group (MKS) 293.70p -0.07%

FTSE 250 - Risers

Ninety One (N91) 174.70p 4.67%

Tyman (TYMN) 366.50p 4.56%

Bytes Technology Group (BYIT) 575.00p 3.88%

Wetherspoon (J.D.) (JDW) 760.00p 3.33%

Discoverie Group (DSCV) 690.00p 2.22%

St James's Place (STJ) 561.50p 2.09%

Grafton Group Ut (CDI) (GFTU) 957.50p 1.84%

Close Brothers Group (CBG) 427.40p 1.62%

The Renewables Infrastructure Group Limited (TRIG) 95.90p 1.59%

Carnival (CCL) 1,346.00p 1.58%

FTSE 250 - Fallers

Auction Technology Group (ATG) 525.00p -5.58%

Bakkavor Group (BAKK) 140.00p -4.76%

Safestore Holdings (SAFE) 758.00p -3.07%

Rathbones Group (RAT) 1,686.00p -2.66%

JTC (JTC) 951.00p -2.36%

Coats Group (COA) 79.10p -2.35%

Volution Group (FAN) 441.50p -2.11%

IntegraFin Holding (IHP) 345.50p -1.99%

FirstGroup (FGP) 157.50p -1.81%

Morgan Sindall Group (MGNS) 2,525.00p -1.56%