The FTSE 100 opened higher on Friday despite the UK’s economic recovery nearly stalling in July, the latest data shows.
The blue chip index rose 24 points, or 0.3%, to 7,048, which is on the way to a 1.3% weekly decline and a relapse into negative territory for a three-month period.
The UK economy’s recovery from the pandemic unexpectedly slowed in July after most restrictions were relaxed as the Delta variant of Covid-19 spread rapidly. Economic output rose by just 0.1% in the month, the office for national statistics announced on Friday, well below the 1% figure in June. Economists polled by Reuters had expected monthly GDP growth of more than 0.6%.
“It was hoped that household consumption would drive economic recovery, but given concerns about Covid cases and the ‘pingdemia’ that has led many to self-isolate, it shows that the economy cannot rely on consumers alone and instead needed other areas of the economy to start delivering again, “said Paul Craig, portfolio manager at Quilter.
Hargreaves Lansdown analyst Susannah Streeter said the road would remain bumpy given the difficulties in hiring drivers and other key employees and the supply bottlenecks that are driving prices so high.
“It may still be the sixth consecutive month of growth, but only just barely, with the recovery clearly plateauing and GDP remaining 2.1% below pre-pandemic levels,” she said.
“What is particularly worrying is that many of the supply chain problems have worsened since July and are warning companies across all industries of problems.”
Commodity and energy stocks performed best on the FTSE, led by a 2.3% increase in Chilean copper mining Antofagasta (ANTO) to € 14.32. Despite economic weakness, real estate portal Legal move (MRV) rose 1.4% to 747 pence.
There was more pain in for the shareholders International consolidated airlines (IAG) as parent company British Airways fell 1.8% to 149p. The ongoing challenges posed by the coronavirus are clearly outweighed by yesterday’s announcement of a rights issue by. becomes clear EasyJet (EZJ) to finance themselves until autumn. The low-cost airlines slipped another 1% to 701p, while other mid-cap travel names Tui (TUI) fell 1.9% to 296 pence.
“A big miss of UK GDP expectations didn’t hurt the pound as the currency rose 0.2% against the US dollar to $ 1.3862. In return, major UK indices shrugged the news, ”said Russ Mold, investment director at AJ Bell.
“To stabilize the ship, there was a conversation between US President Joe Biden and Chinese President Xi Jinping, in which they discussed the need to ensure that competition does not get into conflict.”
The FTSE 250 rose 53 points, or 0.2%, to 23,853. Housewares dealer Dunelm (DNLM) continued to trade strong after encouraging results earlier in the week, rising 1.8% to £ 15.04.
Nanopore lifts SUPP
Schroder UK Public Private (SUPP), the former Woodford Patient Capital Trust, rose 1.8p, or first-half sales, to £ 59 million. Stifel has upgraded the share from “Hold” to “Buy”.
The Japanese trusts continued to advance on hopes of market-friendly moves by a new prime minister. Faithful to Japan (FJV) rose 9 pence, or 3.7%, to 256.6 pence and Baillie Gifford Japan (BGFD) gained 2.2% to £ 11.
Aquila European Renewables Income (AERI) announced an increase of 90 million. The share rose by 0.5% to € 1.05.
BMO real estate investments (PAP), which traded at a discount of 30% to its net asset value (NAV), stabilized 0.7% to 73.9p after announcing a quarterly dividend of 1p per share, up 18% from the Previous quarter after strong rental income of 97% in the last quarter of 12 months.
LXI riding (LIX) fell 0.7% to 145p after the board issued a statement after press speculation confirming that it was “in very preliminary discussions” with. was involved Save income (MR), increased by 0.9% to 4015p, but this possibility is now being examined for a longer period of time via a possible merger.
Target Healthcare (THRL) raised £ 125 million at 115p per share through a “significantly oversubscribed issue” that increased the volume from £ 100 million. It rose 1.6% to 118 pence.
Tritax Eurobox (EBOX) rose 1.7% to 113p when news of a 170 million equity issue
FTSE is rising despite UK growth slowing in July