Major Brexit victory as EU economy stagnates while UK market hits record high

Brexit triumph arsenic UK markets deed grounds precocious contiguous (Image: Getty)

Britain welcomed different Brexit triumph the time earlier its 5th day of leaving the EU arsenic the country’s apical scale touched grounds highs. Meanwhile, the eurozone system stagnated successful the past 4th of 2024, Eurostat information revealed connected Thursday.

Britain’s markets outperformed contiguous arsenic the blue-chip FTSE 100, the country’s benchmark index, reached grounds highs. The quality was welcomed by investors pursuing months of economical downturn and uncertainty.

The apical scale finished astatine 23.94 points, oregon 0.28%, higher to extremity the time astatine 8,557.81. Yet astatine 12:17pm, it was up a postitive 0.4% astatine 8,595.79 points.

On the different hand, 2 of the European Union’s largest economies, Germany and France, saw worse-than-expected contractions, exposing economical weakness crossed the bloc.

Britain’s benchmark scale touched a grounds precocious contiguous (Image: Getty)

Data shows eurozone gross home merchandise flatlining from the erstwhile 4th which contradicts the 0.4% maturation recorded successful the 3rd quarter. This benchmarks the weakest show since 2023. Germany’s system shrank by 0.2% which was worse than the predicted 0.1% diminution arsenic France’s GDP fell by 0.1%, besides failing to execute expectations.

The weaker-than-expected GDP figures tin astir warrant that the European Central Bank volition slash interest rates during its argumentation gathering today.

"The eurozone system is fragile, facing stagnant maturation and rising recession risks. Q4 GDP information confirms near-zero growth, and PMI surveys bespeak ongoing manufacturing contraction. In contrast, the US system remains robust, driven by user spending, a choky labour market, and AI-driven investment," said Boris Kovacevic, Global Macro Strategist astatine Convera.

Back successful the UK, institution values climbed, with Pennon and United Utilities stating that they were raising dividends for shareholders. Shares successful Pennon were up 7.5% astatine 554p. United Utilities, which supplies h2o successful the North West, finished 2% higher astatine 999.4p.

Lloyds banking radical were besides successful the greenish arsenic they announced plans to adjacent the doors of 136 precocious thoroughfare branches. The quality prompted shares to decorativeness 1.5% up astatine 62.52p connected Wednesday.

WH Smith shares accrued to their highest for 2 months aft the concern reported a 3% hike successful radical income for the past 21 weeks. Shares moved up 6.9% arsenic a result.