London's main stock index had a strong finish to the week, helped along by encouraging news about the broader British economy.
The FTSE 100 closed up one point oh eight percent at 10,840.35, its highest level since early September, after data showed the United Kingdom's economy grew more than economists had forecast. Stronger than expected growth figures tend to lift a stock market in two ways: they suggest company earnings may hold up better than feared, and they give investors some reassurance that the broader economy is not sliding toward a downturn, even as interest rates remain elevated.
The gains were not evenly spread across the index. Pharmaceutical giant AstraZeneca rose more than three percent, while online retailer THG jumped more than sixteen percent. Not every stock joined the rally, however. Ceres Power, a hydrogen and fuel cell technology company, fell sharply, nearly sixteen percent, while mining group Glencore slipped modestly. Defense and aerospace company Rolls-Royce was little changed on the day. The mixed picture beneath the headline number is typical of a market being pulled in different directions, in this case by good macroeconomic news on one hand and stock specific developments on the other.
The move in London came even as futures on the FTSE 100 pointed slightly lower heading into the next session, a reminder that a strong close does not always set the tone for what comes next, particularly with the same global interest rate questions that rattled U.S. and Asian markets this week also weighing on sentiment in Europe.
Watch for the Bank of England's next policy signals and whether this week's growth data changes expectations for UK interest rate cuts in the months ahead.
Why does GDP data move stock markets?
Stronger than expected economic growth suggests company sales and earnings may hold up better than feared, which tends to support share prices.
What is the FTSE 100?
The FTSE 100 is the benchmark index of the 100 largest companies listed on the London Stock Exchange.