Tag: UK GDP

  • FTSE 100 Dips 9.70 Points to 10,618 as Strong UK GDP Fails to Counter Oil and Global Headwinds

    FTSE 100 Dips 9.70 Points to 10,618 as Strong UK GDP Fails to Counter Oil and Global Headwinds

    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.

  • FTSE 100 Opens Lower as Middle East Tensions Overshadow UK GDP Growth

    FTSE 100 Opens Lower as Middle East Tensions Overshadow UK GDP Growth

    The FTSE 100 opened 45 points lower at 10,470.77 on Thursday, as escalating Middle East tensions weighed on investor sentiment despite stronger-than-expected UK economic growth data. Brent crude futures fell 0.52% to $84.51 a barrel, while US West Texas Intermediate (WTI) eased 0.13% to $79.50 a barrel.

    Sterling was quoted at $1.3537 early Thursday, up from $1.3486 at the London equities close on Wednesday. Against the euro, sterling rose to €1.1800 from €1.1791 a day earlier.

    Gainers & Losers

    On the upside, Diploma rose 3.84% to £7,030, while Spirax Group advanced 1.73% to £6,765. DCC gained 1.03% to £6,370, and Weir Group gained 1.91% to £2,454. IMI added 1.32% to £2,912, while Smiths Group climbed 1.31% to £2,547.

    On the downside, Games Workshop Group declined 0.59% to £20,380, while Experian slipped 4.28% to £2,593. AstraZeneca fell 0.62% to £12,488, and Lion Finance Group edged lower by 0.61% to £11,350. Rio Tinto dropped 1.02% to £6,797, while Coca-Cola Europacific Partners eased 0.83% to £7,745.

    UK Economy Grew a Modest 0.1% in May

    Figures from the Office for National Statistics (ONS) revealed the economy grew 0.1% in May, broadly in line with market expectations. The services sector, which contributes more than 80% of total economic output, increased 0.3% against a fall in other parts of the economy. Manufacturing fell 0.8% and production dipped 0.5%. “While all three main sectors grew over the three months (to May), the slight growth in GDP in May was driven by services alone, with production and construction both falling back,” Liz McKeown, director of economic statistics at the ONS, said.

    Experian’s Revenue Increased 10%

    Experian said revenue rose 10% in the three months to 30 June. Revenue in the UK and Ireland increased 7%, backed by the acquisition of software platform provider KYC360 and recent contract wins, while underlying sales gained 5%. Chief executive Brian Cassin cited the firm’s “trusted data assets, scaled platforms and growing AI-enabled opportunities.” Experian shares fell by more than 7% after its full-year results in May as investors questioned whether AI could erode demand for some of its data products over time despite the company highlighting productivity gains from the technology.

    ABB to Acquire Rotork for £4 Billion

    Rotork agreed to a £4 billion acquisition after reaching an agreement with Swiss tech firm ABB. The Zurich-based electrical engineering company has recommended that its shareholders accept a deal that values the firm at £4.1 billion. It is made up of £503 in cash and a dividend of up to £3. The offer price is a 73% premium on Rotork’s closing share price on 15 July. Under the terms of the deal, the group will operate as a separate division in ABB’s Automation business and is expected to add 3% to the group’s total revenue.

    Frasers Witnesses Profit Jump

    Frasers Group has seen its profit jump, driven by its recent takeover bids for rival retailers. The fashion group saw revenue jump by 8% to £3.3 billion in the year to the end of April, as pre-tax profit grew by 39% to £528 million. “Leveraging the strength of our UK Sport business and brand relationships, international expansion has become a powerful growth engine for the Group and a key pillar of our long-term strategy,” the firm said. Frasers stepped up its takeover efforts in recent weeks with a £1.7 billion bid for German fashion house Hugo Boss and a £166 million play for Australian shoe firm Accent.

    Global Market View

    In the US, the Dow Jones gained 0.3%, the S&P 500 rose 0.4% and the Nasdaq added 0.6%, with Apple climbing to a record high after reports it had secured approval to launch its generative AI features in China. In Asia on Thursday, Tokyo’s Nikkei 225 fell 2.79% to 66,835.54, while China’s Shanghai Composite dipped 1.85%. Hong Kong’s Hang Seng climbed 1.33%, and South Korea’s Kospi declined 6.37%. In India, both the Nifty 50 and the Sensex rose by 0.22% and 0.24%, respectively.

  • FTSE 100 Rises 29 Points to 10,513 as UK GDP Growth Beats Expectations, Miners Lead Gains

    FTSE 100 Rises 29 Points to 10,513 as UK GDP Growth Beats Expectations, Miners Lead Gains

    The FTSE 100 opened 29 points higher at 10,513 on Tuesday, as fresh data showed the UK economy grew faster than expected in the first quarter. The rally was led by mining stocks amid a broader global market uplift, even as uncertainty lingers over the US-Iran peace deal.

    Brent crude futures fell 1.04% to $72.39 a barrel, while US West Texas Intermediate (WTI) rose 0.78% to $70.20.

    Gainers and Losers

    On the upside, Antofagasta jumped 3.12% to £3,864, and Anglo American advanced 3.09% to £3,739. Polar Capital Technology Trust gained 2.55% to £703, Glencore rose 2.43% to £523.40, Sainsbury’s added 2.34% to £323.20, and Rio Tinto climbed 1.94% to £7,213. On the downside, Persimmon fell 2.87% to £1,051, Coca-Cola HBC slipped 1.01% to £4,884, 3i Group declined 1% to £2,471, Coca-Cola Europacific Partners dropped 0.91% to £7,615, Severn Trent eased 0.61% to £2,948, and Games Workshop edged down 0.18% to £21,880.

    Smarter Web Company Posts £72 Million Loss

    The crypto firm reported a £72 million loss as Bitcoin fell below $60,000. The company, which once had a market cap of around £1 billion, has now fallen below £100 million. Despite the setback, the firm said it remains confident in Bitcoin’s long-term prospects, noting that volatility is a historical feature of the asset.

    Sainsbury’s Sales Jump 3.1%

    Sainsbury’s total sales rose 3.1% year-on-year to £8 billion, driven by strong demand for berries, barbecue, and deli products during record heat. Grocery sales increased 3.6% to £7.6 billion, but the company warned that the long-term impact on business and customers remains uncertain. General merchandise and clothing sales declined 3.7% to £438 million. Argos continued to struggle due to subdued consumer spending, with sales falling 0.5% to £1.1 billion, though a late spike in TV sales came as the World Cup began.

    UK Economic Growth Revised

    The UK economy grew 0.6% in the first quarter compared to the previous quarter, unrevised from the earlier estimate. However, year-on-year growth was revised down to 0.9% from 1.1%. Business investment rose 0.9% on the quarter, imports jumped 1.4%, household consumption grew 0.6%, and government spending increased 1.3%. Liz McKeown of the ONS said growth in Q1 was unchanged, but the 2025 growth figure was revised downward.

    Global Market View

    In the US, the Dow Jones added 0.6% to close above 52,000 for the first time, the Nasdaq rose 2.1%, and the S&P 500 gained 1.2%. In Asia, South Korea’s Kospi rose 0.97%, Japan’s Nikkei 225 gained 0.86%, and Taiwan’s TAIEX advanced 2.5%. India’s Nifty 50 and Sensex both fell slightly, by 0.04% and 0.15% respectively.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks carry risk; readers should conduct their own research before investing.