(Alliance News) – Stock prices in London were higher at midday on Thursday, supported by stronger-than-expected UK economic data.
The FTSE 100 index was up 42.92 points, 0.4%, at 10,227.11. The FTSE 250 was up 190.79 points, 0.8%, at 23,148.10, and the AIM All-Share was up 1.52 points, 0.2%, at 803.21.
The Cboe UK 100 was up 0.5% at 1,024.14, the Cboe UK 250 was up 1.0% at 20,224.01, and the Cboe Small Companies was up 0.3% at 18,062.96.
UK gross domestic product rose in November, increasing 0.3% from October and beating FXStreet expectations for a 0.1% rise, according to figures from the Office for National Statistics.
The monthly gain reversed a 0.1% decline in October and was driven by a 0.3% rise in services output and a 1.1% jump in production. Over the three months to November, GDP grew 0.1%, improving from flat growth in the previous rolling period.
Chris Turner from ING said: “The UK delivered a positive set of data this morning, including a higher-than-expected monthly GDP figure for November and stronger than expected industrial production figures. A little earlier, we also had some positive news on the housing market, where estate agents are becoming a little more optimistic about sales.”
Russ Mould, investment director at AJ Bell, said: “Better than expected UK GDP growth in November is welcome news for the new year. While partially helped by Jaguar Land Rover getting back to work after a cyber-attack, the increase in services activity shows there is more to the GDP progression than just restarting car production.
“It’s also positive to see GDP growth for a month where business and consumer decisions might have been put on ice pending the budget. The GDP expansion is positive, yet UK economic activity is still pedestrian overall. There is still a reticence by many businesses to invest heavily, and that is evident by a fragile jobs market.”
The pound was quoted at USD1.3419 at midday on Thursday, lower than USD1.3450 at the London equities close on Wednesday. The euro traded at USD1.1632 at midday on Thursday, lower than USD1.1650 late Wednesday. Against the yen, the dollar was quoted at JPY158.56, up versus JPY158.25.
In European equities on Thursday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.1%.
The eurozone’s goods trade surplus missed expectations in November, while industrial output growth was stronger than anticipated, data published by Eurostat showed on Thursday.
First estimates showed a EUR9.9 billion surplus in trade in goods in November, down 46% from EUR18.4 billion in October and 36% lower than EUR15.4 billion in November 2024. This was worse than the FXStreet-cited consensus forecast for a surplus of EUR15.2 billion.
Meanwhile, industrial production in the eurozone rose 0.7% month-on-month in November, matching October’s pace, which was revised down from 0.8%. The reading beat consensus expectations for 0.5% growth.
The sharpest monthly increases were recorded in Estonia at 6.0%, followed by Lithuania at 5.8% and Cyprus at 1.8%. The steepest declines were seen in Luxembourg at 7.3%, Portugal at 3.0% and Belgium at 2.3%.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.1%, the S&P 500 index up 0.4%, and the Nasdaq Composite up 0.9%.
The yield on the US 10-year Treasury was quoted at 4.15%, widening from 4.14%. The yield on the US 30-year Treasury was quoted at 4.80%, unchanged.
Gold was quoted at USD4,618.20 an ounce at midday on Thursday, lower than USD4,621.15 on Wednesday. Brent oil was trading at USD64.26 a barrel, down from USD65.97 late Wednesday.
Joshua Mahony, chief market analyst at Rostro, said: “Oil prices have turned lower after Donald Trump cooled calls for near-term military action in Iran, saying he was reassured by information that the regime would stop killing people involved in the recent protests.
“While many will look at this as another opportunity for the US to open up a maligned nation to higher oil exports, the fact is that Iran already produces much more that Venezuela and that output is at risk if the government falls.
“Concerns around the potential disruption to the flow of oil through the straits of Hormuz, coupled with the potential impact on Iranian output in the event of a military conflict means that the recent bearish oil thesis has been turned on its head this week.”
Back in London, Schroders was the top FTSE 100 performer, up 6.4%, after saying it expects full-year adjusted operating profit to be ahead of market expectations following stronger fee income and tighter cost control in 2025.
The London-based financial services firm forecast adjusted operating profit of at least GBP745 million for 2025, up 24% from GBP603.1 million a year earlier.
LondonMetric Property rose 2.5% after Bank of America raised its rating to ‘buy’ from ‘neutral’ and lifted its price target to 220 pence from 215 pence.
Among decliners, Diageo lost 1.5% after Jefferies cut its price target to 2,000 pence from 2,300 pence, while reiterating its ‘buy’ rating.
On the FTSE 250, Dunelm was the worst performer, down 17%, after warning its annual pretax profit is expected to come in at the lower end of market expectations following a softer second quarter.
Among smaller caps, Tern lost 29% after losing its SVV2 stake following a default, while GenIP rose 20% after reporting 2025 revenue up about 330% and gross margin rising around 150% from financial 2024, driven by growing adoption of its invention intelligence product suite.
Still to come on Thursday’s economic calendar are US weekly jobless claims and retail sales, Canada manufacturing and wholesale sales, and US business inventories.
By Eva Castanedo, Alliance News reporter
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