FTSE 100 opens higher, on track for fourth quarterly gain
2024.06.28 04:04
By Purvi Agarwal
(Reuters) – Britain’s blue-chip stock index opened higher on Friday, on course to log its fourth consecutive quarterly gain, after stronger-than-expected local economic growth numbers offset jitters ahead of U.S. inflation data.
The added 0.5%, with energy and financial stocks in the lead, and the midcap was up 0.1%, as of 0716 GMT.
Britain’s economy grew 0.7% in the first three months of this year, compared with the previous quarter, and came in above an estimate of 0.6% growth, official figures showed.
The figures came in as Britons are set to vote on July 4 in the parliamentary elections, which opinion polls suggest will see Labour Party leader Keir Starmer replace Conservative Prime Minister Rishi Sunak.
“With less than a week to go, the UK electorate aren’t necessarily going to feel better off because of these numbers,” said Rebecca Maclean, a UK equities investment director at abrdn.
“There’s a low level of uncertainty about the outcome. We can look towards more political stability in the UK market.”
The keenly awaited U.S. personal consumption expenditure (PCE) numbers are due later in the day. A growing view of cooling U.S. inflation prompting the Federal Reserve to ease borrowing costs this year has supported global stocks.
UK energy shares climbed more than 1%, as expectations of a rate cut by the U.S. Fed buoyed oil prices. [O/R]
Financials also edged higher, with banks gaining 0.7%, while the investment banking and brokerage sector inched 0.8% higher.
Shares of sportswear brand JD (NASDAQ:) Sports Fashion lost 6.1% and sank to the bottom of the FTSE 100 after U.S. peer Nike (NYSE:) forecast a surprise revenue fall in 2025 on Thursday.
