FTSE closes weaker after stagnant GDP reading
The FTSE 100 moved 0.36%, or 28.7 points, lower to finish at 7,882.45.
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Your support makes all the difference.The FTSE 100 and other European markets took a backwards step on Friday after a positive march in recent sessions.
London traders swallowed early morning figures from the Office for National Statistics confirming that the UK economy stagnated in the final three months of 2022.
The data confirmed that the UK narrowly avoided a recessions, following a decline in the previous quarter, but investor sentiment was weak amid a 0.5% contraction in December.
The FTSE 100 moved 0.36%, or 28.7 points, lower to finish at 7,882.45.
Michael Hewson, chief market analyst at CMC Markets UK, said: “Having posted three successive days of new all-time highs, the FTSE 100 has slipped back and has closed the week lower.”
Chris Beauchamp, chief market analyst at IG, added: “The FTSE 100 is unable to escape the enveloping gloom seen across most indices this week.
“Caught between a strong payrolls report and next week’s US CPI reading, which has been the only piece of economic data worth watching of late, most stock markets have struggled to make headway this week.”
Elsewhere in Europe, rising yields and higher oil prices put pressure on the other major indexes.
The Dax fell by 1.44%, and the French Cac 40 declined by 0.88% at close.
Across the Atlantic, US markets opened significantly lower led by drops for tech firms due to higher bond yields.
Meanwhile, sterling lost ground against the dollar in a cautious response from Friday’s GDP figures.
The pound was down by around 0.47% to 1.206 US dollars, and rose by 0.17% to 1.130 euros at market close in London.
In company news, Standard Chartered shares lost ground after First Abu Dhabi Bank (FAB) confirmed that a takeover offer for the FTSE firm is not currently on the cards.
The rebuttal came reports on Thursday that the United Arab Emirates bank could be again considering a takeover bid worth up to 35 billion US dollars (£28.9 billion) for London-listed Standard Chartered.
Shares in the business slipped by 38.2p to 729.4p by the close of play.
Saga moved higher in value after the over-50s group confirmed reports it is in talks regarding the potential sale of its insurance underwriting arm.
The London-listed firm told investors that it is in “exclusive discussions” with Australian insurance group Open Insurance Technologies over a deal for underwriting business Acromas.
Shares in Saga closed 6.4p higher at 177.3p on Friday as a result.
Elsewhere, shares in Itim Group sank by 9.85p to 40p after the software solutions business said earnings for last year are due to be a disappointing £200,000.
The price of oil moved higher after Russia said it was planning to cut its March production numbers by 500,000 barrels a day, helping to boost London’s oil firms.
Brent crude oil increased by 2.3% to 86.48 US dollars (£71.70) per barrel when the London markets closed.
The biggest risers in the FTSE 100 were Shell, up 73p at 2,539p, BP, up 14.3p at 560p, AstraZeneca, up 200p at 11,390p, BT Group, up 2.1p at 136p, and Compass, up 21.5p at 1,877.5p.
The biggest fallers of the session were Ocado Group, down 80.8p at 635.2p, Standard Chartered, down 38.2p at 729.4p, Smurfit Kapp, down 153p at 3,213p, IAG, down 7.64p at 160.7p, and Frasers Group, down 34p at 760p.