The Office for National Statistics revealed that the country’s gross domestic product nudged up by 0.4% in May, after experiencing no growth in April. This surpassed some analysts’ predictions of a 0.2% rise for the month
UK investors were in a buoyant mood on Thursday as the pound reached a four-month high, following official data that showed the economy was healthier than anticipated.
The Office for National Statistics revealed that the country’s gross domestic product (GDP) nudged up by 0.4% in May, after experiencing no growth in April. This surpassed some analysts’ predictions of a 0.2% rise for the month.
Meanwhile, data released in the US indicated that inflation had cooled to 3% in June across the world’s largest economy. This bolstered hopes that the central bank has control over volatile price increases and could start reducing interest rates later this year.
London’s FTSE 100 index climbed 29.83 points, or 0.36%, to finish at 8,223.34, with utilities companies contributing to its ascent. The more UK-centric FTSE 250 also rose by 1.3% on Thursday amid the encouraging news about the economy.
In Paris, the Cac 40 ended 0.71% higher and in Frankfurt the Dax increased by 0.72%. Over in New York, the S&P 500 was down roughly 0.7% and the Dow Jones was up 0.3% when European markets closed.
The pound leapt 0.5% against the US dollar to 1.291, its highest level since early March. Sterling also gained 0.15% against the euro, reaching 1.188.
In corporate news, shares in Jet2 received a lift after the holiday company announced its profits had rocketed by 43% over the year to the end of March, compared with the previous year. The price of its package holidays saw a significant increase by more than a tenth to an average of £830 over the year, in part due to efforts to offset the impact of cost inflation. This resulted in a 5% rise in its share price.
Recruitment firm Hays also had a strong session despite warning about pressure on its earnings due to challenging conditions in Europe. The company acknowledged some impact from political uncertainty in the UK and France ahead of general elections.
However, it also unveiled cost-cutting measures, including reducing its workforce in recent months. Shares in Hays ended the day 5% higher. The biggest risers on the FTSE 100 were Severn Trent, up 98p to 2,715p, Rightmove, up 19p to 559.8p, easyJet, up 15.6p to 493.9p, Schroders, up 11.2p to 388p, and Persimmon, up 41.5p to 1,484p.
The biggest fallers on the FTSE 100 were Vodafone, down 1.22p to 71.22p, Relx, down 52p to 3,543p, DCC, down 80p to 5,610p, Admiral, down 26p to 2,598p, and Darktrace, down 4p to 581.4p.
