London pre-open: Stocks seen lower; UK economy returns to growth

11th Oct 2024 07:39

(Sharecast News) - London stocks were set to fall at the open on Friday following a downbeat US session, as investors mulled the latest UK GDP data.

The FTSE 100 was called to open around 15 points lower.

Figures released earlier by the Office for National Statistics showed the UK economy returned to growth in August.

GDP rose 0.2% following no growth in June and July, in line with economists' expectations.

ONS director of economic statistics, Liz McKeown, said: "All main sectors of the economy grew in August, but the broader picture is one of slowing growth in recent months, compared to the first half of the year.

"In August, accountancy, retail and many manufacturers had strong months, while construction also recovered from July's contraction. These were partially offset by falls in wholesaling and oil extraction."

In corporate news, BP followed sector rival Shell and said it expected third-quarter realised refining margins would hit operating profit by $0.4bn to $0.6bn and warned its oil trading result would be weak as it felt the impact of lower crude prices.

Upstream production in the third quarter was now expected to be broadly flat compared to the prior quarter, with production broadly flat in oil production & operations and in gas & low carbon energy, the company said in a trading statement.

QinetiQ said it had secured a three-year contract worth up to £150m with Defence Digital, to provide engineering and programme management for the UK's next-generation tactical military communications.

The FTSE 250 company said the contract would enhance the British Army's front-line decision-making capabilities with around 100 experts from QinetiQ and its partners to support the Ministry of Defence in delivering the solution.

Housebuilder Bellway appointed the former chief financial officer of competitor Cairn Homes as its new CFO.

Shane Doherty, a chartered accountant who left Cairn after four years in April, was previously the CFO at Morgan McKinley and European Finance Director at Flutter Entertainment. He will be replacing group finance director Keith Adey, who announced his retirement in May, on 1 December.