🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

London open: Stocks gain after better-than-expected GDP

Published 13/01/2023, 08:28
London open: Stocks gain after better-than-expected GDP
UK100
-
C
-
EVOK
-
WIZZ
-

Sharecast - At 0825 GMT, the FTSE 100 was up 0.4% at 7,824.44.

Data out earlier from the Office for National Statistics showed that the economy unexpectedly grew in November.

Monthly gross domestic product nudged 0.1% higher in November, following growth of 0.5% in October. Analysts had been expecting a 0.2% decline. In the three months to November, however, GDP fell 0.3%, primarily due to the extra bank holiday in September for the late Queen’s state funeral.

The main driver of November’s growth was the services sector, which grew 0.2% following an increase of 0.7% in October, which the ONS revised upwards from its earlier estimate for 0.6%. The largest contributions came from administrative and support services activities as well as information and communication.

The FIFA football World Cup, which kicked off on 20 November, also helped, the ONS noted. Output in consumer-facing services growing by 0.4%, with the largest contribution coming from food and beverage services activities.

Production output decreased by 0.2%, following a fall of 0.1% in October, which was revised down from no change, dragged lower by manufacturing, which slid 0.5%. The construction sector was flat following growth of 0.4% a month previously.

Ruth Gregory, senior UK economist at Capital Economics, said: "Even if the economy does a bit better than expected in Q4, it is at best stagnating.

"And it is too soon to conclude the economy will be able to get through this period of high interest rates and high inflation largely unscathed. We still think a recession is on its way in the first half of 2023."

Later in the day, market participants will eye earnings from US banks Citigroup (NYSE:C), Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM), who will be kicking off the earnings season on Wall Street.

In UK equity markets, BA and Iberia owner IAG and budget airline Wizz Air (LON:WIZZ) flew higher. Wizz was boosted by an upgrade to 'outperform' at Davy.

Taylor Wimpey (LON:TW) was little changed after the housebuilder said full-year operating profit was set to be in line with market views, but cautioned that sales remain "significantly" below the third quarter of last year amid rising mortgage rates and ongoing market uncertainty.

Elsewhere, gambling firm 888 Holdings (LON:888) was in the red as it announced the departure of its chief financial officer and reported a 3% fall in group revenues for 2022.

Bulmers and Magners owner C&C Group tumbled as it downgraded its full-year profit expectations, citing cost-of-living pressures on consumers.

Market Movers

FTSE 100 (UKX) 7,824.44 0.39%

FTSE 250 (MCX) 19,845.40 0.02%

techMARK (TASX) 4,519.37 0.18%

FTSE 100 - Risers

International Consolidated Airlines Group (LON:ICAG) SA (CDI) (IAG) 155.18p 1.52%

London Stock Exchange Group (LON:LSEG) 7,476.00p 1.41%

Croda International (CRDA) 6,994.00p 1.27%

Airtel Africa (AAF) 115.50p 1.14%

Experian (EXPN) 2,890.00p 1.12%

Scottish Mortgage Inv Trust (SMT) 773.00p 1.07%

Reckitt Benckiser Group (RKT) 5,980.00p 1.05%

Whitbread (LON:WTB) 3,051.00p 1.03%

Tesco (LON:TSCO) 248.50p 1.02%

AstraZeneca (NASDAQ:AZN) 11,552.00p 0.91%

FTSE 100 - Fallers

Flutter Entertainment (CDI) (FLTR) 12,360.00p -1.28%

Entain (LON:ENT) 1,447.00p -1.23%

Coca-Cola (NYSE:KO) HBC AG (CDI) (CCH) 1,908.50p -0.93%

3i Group (LON:III) 1,399.50p -0.82%

Persimmon (LON:PSN) 1,394.00p -0.75%

British American Tobacco (LON:BATS) 3,151.50p -0.66%

Burberry Group (LON:BRBY) 2,238.00p -0.62%

Next (NXT) 6,578.00p -0.51%

JD Sports Fashion (JD.) 158.90p -0.50%

Fresnillo (LON:FRES) 963.20p -0.50%

FTSE 250 - Risers

Wizz Air Holdings (WIZZ) 2,865.00p 3.35%

Dechra Pharmaceuticals (LON:DPH) 2,906.00p 2.83%

Carnival (NYSE:CCL) 744.80p 2.45%

Darktrace (LON:DARK) 261.90p 1.99%

Ninety One (N91) 200.40p 1.67%

Moonpig Group (MOON) 124.10p 1.39%

Capricorn Energy (LON:CNE) 247.80p 1.23%

TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 170.25p 1.19%

ITV (LON:ITV) 78.48p 1.13%

Hilton Food Group (HFG) 625.00p 1.13%

FTSE 250 - Fallers

Wetherspoon (J.D.) (JDW) 474.60p -4.47%

Paragon Banking Group (PAG) 561.00p -3.61%

Currys (CURY) 61.55p -2.99%

Jupiter Fund Management (JUP) 140.30p -2.84%

Pennon Group (LON:PNN) 944.50p -2.73%

IWG (IWG) 181.15p -2.19%

Aston Martin Lagonda Global Holdings (AML) 168.05p -1.70%

Assura (AGR) 57.20p -1.55%

Hiscox Limited (DI) (LON:HSX) 1,100.00p -1.48%

Supermarket Income Reit (SUPR) 102.50p -1.44%

Read more on Sharecast.com

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.