The FTSE 100 opened 9.70 points lower at 10,618.72 on Friday, despite stronger-than-expected UK GDP data that briefly lifted sentiment. The index struggled to hold gains as Brent crude futures fell 1.44% to USD 106.1 per barrel and US WTI dropped 1.36% to USD 101.1 per barrel, reflecting ongoing concerns over Iran-linked disruptions in the Strait of Hormuz.
Sterling was quoted at USD 1.3513 early Friday, slightly lower than USD 1.3532 at the London equities close on Thursday. Against the euro, the pound edged up to EUR 1.1637 from EUR 1.1636 a day earlier.
Gainers and Losers
On the upside, Games Workshop Group climbed 1.21% to 17,540p, Standard Life advanced 1.15% to 921.50p, and Hiscox gained 1.14% to 1,871p. Lion Finance Group rose 1.12% to 13,530p, Barclays added 1.11% to 489.70p, and British American Tobacco increased 1.10% to 4,137p.
On the downside, RELX fell 2.17% to 2,440p, London Stock Exchange Group declined 1.74% to 8,364p, and Experian dropped 1.44% to 2,739p. Antofagasta slipped 0.77% to 3,742p, Rio Tinto lost 0.67% to 7,316p, and Reckitt Benckiser Group edged 0.47% lower to 5,034p.
UK GDP Surprise Growth in July
The UK economy surprised markets with growth in July. Official figures from the Office for National Statistics (ONS) showed GDP expanded 0.4%, well ahead of economists’ forecast of zero growth. The services sector, which accounts for around 80% of GDP output, grew 0.4%. Production increased 0.2% and construction rose 0.1%.
Liz McKeown, director of economic statistics at the ONS, noted: “Within the services sector, computer programming was the largest contributor, continuing the strong growth seen throughout the year, with evidence that businesses involved with AI and related technologies helped to boost the sector.”
Oracle’s AI Spending Surges
Oracle’s spending on AI infrastructure reached USD 28.5 billion (GBP 21 billion) in its latest quarter, underscoring the escalating cost of meeting booming demand for computing capacity. The software group expects capital expenditure to reach USD 90 billion to USD 95 billion this financial year as it invests heavily in data centers and hardware to compete with Amazon, Microsoft, and Google. Overall revenue rose around 30% to USD 19.35 billion, ahead of Wall Street forecasts, while earnings also topped expectations.
Trainline’s H1 Revenue Beats Forecasts
Shares in Trainline Plc rose over 3% on Friday after the company reported first-half net ticket sales and revenue ahead of analyst forecasts. Net ticket sales were 0.7% ahead of Visible Alpha consensus, and revenue was 2% ahead. UK net ticket sales were 3% ahead of consensus, while International was 5.5% behind and Solutions 1.2% behind. Group net ticket sales on a constant-currency basis were flat.
Global Market Overview
In the US, the Dow Jones Industrial Average closed down 316.56 points (0.6%) at 52,064.10. The S&P 500 fell 0.58% to 7,591.70, and the Nasdaq Composite slid 0.65% to 26,081.72. In Asia on Friday, Tokyo’s Nikkei 225 declined 1.93% to 64,011.34, China’s Shanghai Composite fell 1.18%, Hong Kong’s Hang Seng dropped 0.66%, and South Korea’s Kospi dipped 1.76%. In India, the Nifty 50 and the Sensex fell by 0.63% and 0.56%, respectively.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making any financial decisions.
Leave a Reply