Global stocks weaken amid ‘lacklustre’ UK economic growth data

Top European markets person ended the week successful the red, with sentiment slipping arsenic caller figures showed UK economical maturation slowed to a near-standstill successful the 3rd quarter.

London’s FTSE 100 struggled to support gains from earlier successful the time and closed 7.58 points lower, oregon 0.09%, astatine 8,063.61.

It came arsenic Chancellor Rachel Reeves said she was “not satisfied” with authoritative information showing that the UK system grew by 0.1% betwixt July and September, the months aft Labour won the wide election.

In September, gross home merchandise (GDP) contracted by 0.1%, according to estimates from the Office for National Statistics (ONS).

The ONS said maturation was subdued crossed astir industries successful the 3rd quarter, with immoderate experts suggesting that businesses had been holding backmost connected spending decisions until aft the autumn Budget.

Activity fell successful September, and that meant that GDP maturation crossed the 3rd 4th was a beauteous lacklustre 0.1%

James Smith, economist for ING

James Smith, a developed marketplace economist for ING, said: “For each the post-Budget excitement astir the imaginable of faster UK growth, the latest GDP figures look to supply a spot of a acold shower.

“Activity fell successful September, and that meant that GDP maturation crossed the 3rd 4th was a beauteous lacklustre 0.1%.”

However, helium said it was important not to “overthink” the caller GDP figures, adding: “The Bank of England has made it abundantly wide that it is not putting overmuch value connected them.”

It was a weaker time of trading for apical banal markets elsewhere successful Europe. In Paris, the Cac 40 dropped 0.58%, and successful Frankfurt, the Dax closed 0.27% lower.

Over successful the US, the S&P 500 moved 1.2% little arsenic the scale weakened pursuing a rally implicit the past week. The Dow Jones was besides down astir 0.7% connected Friday afternoon.

The lb was down astir 0.3% against the US dollar astatine 1.262, and was down 0.5% against the euro astatine 1.197.

In institution news, Lord Nat Rothschild’s Volex radical made a imaginable connection worthy £250 cardinal to bargain Woking-based shaper TT Electronics.

He said helium was troubled by “missteps” taken by the London-listed firm’s enactment team, taking purpose astatine its acquisition strategy for resulting successful “very disappointing outcomes”.

Volex, which provides powerfulness products for instrumentality specified arsenic infirmary ventilators, electrical cars and laptops, said it had submitted 2 takeover proposals, but that TT Electronics had rejected both.

TT Electronics’ stock terms soared 40.5% connected the news, portion Volex was down 10.8% astatine the close.

Elsewhere, housebuilder MJ Gleeson said determination was a “lack of conviction” successful the lodging marketplace done autumn, adding that it expects full-year results to beryllium successful enactment with expectations.

The Sheffield-based developer said that contempt the anemic momentum, it hoped the Bank of England’s caller quarter-point involvement complaint chopped would boost purchaser confidence.

Ahead of its yearly wide meeting, MJ Gleeson said nett preservation rates from July to October were higher than the erstwhile year, astatine 0.53 per tract per week, but that it continues to spot borderline unit due to the fact that of higher physique costs. Shares fell 2.7% connected Friday.

The biggest risers connected the FTSE 100 were Land Securities, up 25p to 605p, easyJet, up 19.4p to 536.8p, Fresnillo, up 19p to 648p, Lloyds, up 1.44p to 56.48p, and British American Tobacco, up 64p to 2,867p.

The biggest fallers connected the FTSE 100 were B&M European, down 20.4p to 378.4p, GSK, down 52.5p to 1,301p, Croda, down 116p to 3,493p, AstraZeneca, down 314p to 9,978p, and Relx, down 108p to 3,531p.