London open: FTSE nudges up after better-than-expected GDP; US inflation eyed

(Sharecast News) - London stocks nudged up in early trade on Friday after a better-than-expected UK GDP reading, but gains were meagre ahead of a key US inflation reading, and as Brent crude held above $105 a barrel.

At 0825 BST, the FTSE 100 was 0.1% firmer at 10,617.71, while Brent crude was down 2.3% at $105.17 a barrel and West Texas Intermediate was 1.9% lower at $100.49.

Figures released earlier by the Office for National Statistics showed the UK 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."

Looking ahead to the rest of the day, attention will turn to the US consumer price index for August at 1330 BST.

Patrick Munnelly at Tickmill Group said: "All eyes are now on today's US August CPI report, which is a critical input for the Federal Reserve's September 15-16 FOMC meeting. With Fed Governor Christopher Waller having emphasised that persistent disinflation signals are vital for policy calibration, a firm headline reading driven by rebounding energy costs could bolster expectations for an immediate rate increase."

On the corporate front, online ticket platform Trainline rallied 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.

Housebuilder Berkeley fell 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) 10,617.71 0.08%

FTSE 250 (MCX) 23,913.00 0.11%

techMARK (TASX) 5,955.60 0.45%

FTSE 100 - Risers

Halma (HLMA) 3,650.00p 1.90%

InterContinental Hotels Group (IHG) 154.40p 1.37%

International Consolidated Airlines Group SA (CDI) (IAG) 416.10p 1.24%

Barclays (BARC) 489.20p 1.09%

Rolls-Royce Holdings (RR.) 1,441.00p 0.97%

Metlen Energy & Metals (MTLN) 47.47p 0.93%

Smiths Group (SMIN) 2,538.00p 0.83%

Weir (WEIR) 2,698.00p 0.82%

Antofagasta (ANTO) 3,784.00p 0.77%

Whitbread (WTB) 2,346.00p 0.77%

FTSE 100 - Fallers

Relx plc (REL) 2,446.00p -1.48%

Experian (EXPN) 2,740.00p -1.44%

London Stock Exchange Group (LSEG) 8,390.00p -1.29%

Compass Group 11 (CPG) 30.51p -1.13%

Computacenter (CCC) 5,075.00p -1.07%

IG Group Holdings (IGG) 1,338.00p -0.74%

The Sage Group (SGE) 969.20p -0.73%

Vodafone Group (VOD) 127.80p -0.58%

Unilever (ULVR) 4,539.50p -0.48%

Associated British Foods (ABF) 1,848.50p -0.46%

FTSE 250 - Risers

Trainline (TRN) 199.20p 8.84%

W.A.G Payment Solutions (EWG) 102.00p 8.40%

XP Power Ltd. (DI) (XPP) 1,994.00p 5.78%

Renishaw (RSW) 5,200.00p 4.78%

Bridgepoint Group (Reg S) (BPT) 294.80p 4.76%

AO World (AO.) 89.70p 4.74%

Baltic Classifieds Group (BCG) 2.53p 4.55%

Diversified Energy Company (DI) (DEC) 1,092.00p 3.63%

Moonpig Group (MOON) 265.00p 3.52%

SDCL Efficiency Income Trust (SEIT) 36.00p 3.45%

FTSE 250 - Fallers

FirstGroup (FGP) 167.10p -5.53%

Applied Nutrition (APN) 281.75p -3.75%

Rank Group (RNK) 82.90p -3.60%

Harbour Energy (HBR) 269.80p -2.88%

Ocado Group (OCDO) 201.60p -2.54%

Jupiter Fund Management (JUP) 159.00p -2.39%

TP Icap Group (TCAP) 326.80p -2.26%

Ithaca Energy (ITH) 278.30p -1.73%

Playtech (PTEC) 395.80p -1.54%

Coats Group (COA) 76.95p -1.53%