(Sharecast News) - London stocks rose on Friday after a better-than-expected UK GDP reading and as oil prices eased back, as the latest US inflation print fuelled rate hike bets.
The FTSE 100 closed up 0.4% at 10,650.44, while Brent crude was down 2.2% at $105.29 a barrel and West Texas Intermediate was 2.5% lower at $99.88 following a report that Gulf states are considering meeting with Iranian officials next week to discuss the Strait of Hormuz.
According to the Financial Times, the meeting is scheduled for Monday in the Omani coastal city of Salalah.
Investors were mulling the latest figures from the Bureau of Labor Statistics, which showed the annual change in the US consumer price index was 3.4% last month, in line with July's reading and matching the consensus forecast.
Core inflation, which excludes food and energy costs that can be volatile month to month, eased to 2.4% in August from 2.5% in July.
Month-on-month, meanwhile, inflation rose to 0.4.% in August from 0.1% in July.
Neil Wilson, UK investor strategist at Saxo Markets, pointed out that front-end yields shot higher and the long-end fell after the US CPI report sent "a strong market signal that the Fed will raise rates next week". He said market implied odds for a rate hike rose to about 90% from under 70% before the print, "implying it's a done deal".
On home shores, figures from the Office for National Statistics showed the economy expanded 0.4% in July, beating expectations for no growth. This followed 0.3% growth in June and no growth in May.
Services growth was 0.4%, while production and construction saw growth of 0.2% and of 0.1%, respectively.
In the three months to July, the economy grew 0.4% compared with the previous three months.
ONS director of economic statistics Liz McKeown said: "Growth remained relatively robust in the latest three months, as ongoing strength in the services sector was only partially offset by falls in both production and construction.
"Within services, computer programming was the largest contributor, continuing the strong growth seen throughout the year, with evidence that businesses involved with AI and related technologies helped to boost this sector.
"Continuing recent trends, research and development and rental and leasing also helped drive growth, while wholesaling saw a notable fall.
"Looking at the latest month, services also drove growth in July, with computer programming again making the largest contribution. Separately, as in June, some businesses reported that the warm weather and FIFA World Cup had affected their activity, although effects differed across industries, benefitting some businesses while creating challenges for others."
Susannah Streeter, chief investment strategist at Wealth Club, said: "While it's far from a rip-roaring recovery, it does suggest the UK economy has more staying power than feared, particularly given the pressure households and businesses are facing from scorchingly high energy prices and elevated borrowing costs."
On the corporate front, online ticket platform Trainline gained as it held guidance and launched a new £100m share buyback after delivering flat sales and revenue for the half year. Group net ticket sales came in at £3.3bn for the six months to 31 August and group underlying revenue was £233m, 1% lower year-on-year.
XP Power, Halma and Renishaw all rose after rating upgrades by Jefferies.
Housebuilder Berkeley nudged lower as it said housing market activity has been further impacted by the ongoing conflict in the Middle East and political uncertainty in the UK, with buyers "more cautious to commit".
The firm, which earlier this year reduced production to focus on cash generation rather than short-term profit targets in response to the Iran war, told shareholders the conflict had continued longer than initially anticipated, while "ongoing political change and uncertainty" was further impacting housing sentiment.
Market Movers
FTSE 100 (UKX) 10,650.44 0.39%
FTSE 250 (MCX) 23,975.73 0.38%
techMARK (TASX) 5,932.61 0.06%
FTSE 100 - Risers
NATWEST GROUP (NWG) 697.80p 2.26%
Lion Finance Group (BGEO) 13,670.00p 2.17%
Barclays (BARC) 493.75p 1.94%
Fresnillo (FRES) 3,014.00p 1.86%
Games Workshop Group (GAW) 17,650.00p 1.85%
International Consolidated Airlines Group SA (CDI) (IAG) 419.70p 1.79%
Computacenter (CCC) 5,220.00p 1.75%
Lloyds Banking Group (LLOY) 111.15p 1.74%
Rolls-Royce Holdings (RR.) 1,454.60p 1.72%
Informa (INF) 889.40p 1.72%
FTSE 100 - Fallers
London Stock Exchange Group (LSEG) 8,238.00p -3.45%
The Sage Group (SGE) 958.00p -2.22%
Smith & Nephew (SN.) 1,008.50p -1.66%
Next (NXT) 14,685.00p -1.54%
JD Sports Fashion (JD.) 78.10p -1.21%
BAE Systems (BA.) 1,898.00p -1.20%
Reckitt Benckiser Group (RKT) 5,000.00p -1.15%
Burberry Group (BRBY) 1,018.00p -1.12%
Rentokil Initial (RTO) 327.70p -1.06%
IG Group Holdings (IGG) 1,331.00p -1.04%
FTSE 250 - Risers
XP Power Ltd. (DI) (XPP) 1,896.00p 5.33%
Vistry Group (VTY) 268.20p 3.71%
W.A.G Payment Solutions (EWG) 97.30p 3.40%
Renishaw (RSW) 5,130.00p 2.97%
Globaldata (DATA) 71.60p 2.95%
Chemring Group (CHG) 532.00p 2.80%
Oxford Nanopore Technologies (ONT) 156.90p 2.75%
TBC Bank Group (TBCG) 5,185.00p 2.67%
Shawbrook Group (SHAW) 310.50p 2.67%
Travis Perkins (TPK) 587.50p 2.62%
FTSE 250 - Fallers
THG (THG) 26.26p -5.06%
Seraphim Space Investment Trust (SSIT) 184.60p -3.25%
Raspberry PI Holdings (RPI) 553.00p -3.15%
Gamma Communications (GAMA) 1,140.00p -2.90%
Victrex plc (VCT) 969.00p -2.71%
Pan African Resources (PAF) 123.40p -2.22%
Applied Nutrition (APN) 287.50p -1.88%
Harbour Energy (HBR) 272.60p -1.87%
Diversified Energy Company (DI) (DEC) 1,082.00p -1.81%
Partners Group Private Equity Limited. (EUR) (PEY) 7.16p -1.65%
41.52 (0.39%)
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