FTSE 100 opens higher, set for fourth quarterly gain
written by Bella Palmer
The FTSE 100 edged up 0.5% and the midcap FTSE 250 was up 0.1%
Britain's blue-chip stock index opened higher on Friday, on course to log its fourth straight quarterly gain, after stronger-than-expected local economic growth figures offset jitters ahead of U.S. inflation data.
The FTSE 100 edged up 0.5%, with energy and financial stocks in the lead, and the midcap FTSE 250 was up 0.1%, as of 0716 GMT.
Britain's economy grew 0.7% in the first three months of this year, compared with the previous quarter, and came in above an estimate of 0.6% growth, according to official figures.
The figures came in as Britons are set to vote on July 4 in the parliamentary elections, which opinion polls indicate will see Labour Party leader Keir Starmer replace Conservative Prime Minister Rishi Sunak.
With less than a week to go, the UK electorate are not necessarily going to feel better off because of these figures, said Rebecca Maclean, a UK equities investment director at abrdn.
She said: There is a low level of uncertainty about the outcome. We can look towards more political stability in the UK market.
The keenly awaited U.S. personal consumption expenditure (PCE) numbers are due later in the day. A growing view of cooling U.S. inflation prompting the Fed to lower borrowing costs this year has supported U.S. stocks.
UK energy shares jumped more than 1%, as expectations of a rate cut by the U.S. Federal Reserve boosted oil prices.
Financials also inched up, with banks adding 0.7%, while the investment banking and brokerage sector edged up 0.8%.
Shares of sportswear brand JD Sports Fashion shed 6.1% and dipped to the bottom of the FTSE 100 after U.S. peer Nike forecast a surprise revenue drop in 2025 on Thursday.
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