- FTSE 100 closes up 12 points at 9,177
- Wall Street benchmarks lower
- UK growth data beats expectations
- Bitcoin treasury stocks in demand
- Aviva leads the gainers
5.07pm: FTSE 100 edges higher
The FTSE 100 was muted despite UK growth on Thursday, adding 12 points at 9,177.
“The FTSE 100 flatlined for much of the day as UK GDP second quarter growth slowed to 0.3% from a 0.7% expansion in Q1 but nonetheless surpassed expectations,” IG senior technical analyst Axel Rudolph said.
“Losses by Rio Tinto, Persimmon and Beazley were offset by strong post-earnings gains by Admiral and Aviva.”
3.43 pm: Just when you thought it couldn't get any duller
The FTSE 100 was stranded just on the cusp of parity as the mid-August malaise continued. The day's big risers - if you can call them that - were largely news-driven with insurers Admiral and Aviva at the vanguard, closely followed by Centrica. See our coverage. The day's losers were the victims of follow-on selling from bad news statements earlier in the week.
2:50pm: Dow, S&P and Nasdaq slip
The Dow Jones was off around 130 points in the sessions early exchanges, losing 0.3% to 44,774.
The S&P 500 dipped 0.25%, to 6,450, and the Nasdaq was also lower.
Evidently, after stronger sessions back-to-back, the market is still largely shrugging off higher inflation risk.
“The impact of tariffs on inflation are finally starting to show,” commented Fawad Razaqzada, analyst at City Index and Forex.com.
“With input costs rising, this may impact earnings for companies in Q3 and Q4. Yet, the downside was limited, suggesting that investors are not too concerned just yet and that they still believe a 25 basis point cut in September is coming.”
1:01pm: Wall Street pauses for breath
US stock futures were steady in early Thursday trading as investors awaited fresh inflation data.
Dow Jones, S&P 500, and Nasdaq 100 futures were practically at the flatline, after back-to-back sessions of gains that lifted benchmarks to record highs.
In premarket, the Dow was just 8 points higher, whilst the S&P was indicated up 2 points and the Nasdaq measured only a 12 point gain.
Sentiment remains underpinned by expectations the Federal Reserve will cut interest rates in September, a view strengthened after July’s Consumer Price Index matched forecasts.
Attention now turns to the Producer Price Index for July, due later today, for confirmation that pricing pressures remain contained. Weekly jobless claims are also on the calendar.
In corporate moves, Cisco Systems fell around 1% premarket after fourth-quarter results slightly topped estimates but offered an outlook in line with expectations.
Deere & Co. slid more than 7% after issuing mixed full-year guidance. Tapestry also traded lower, while Birkenstock gained after beating quarterly forecasts.
Crypto-related shares stayed in focus after exchange operator Bullish extended gains, trading over 10% higher and more than doubling its IPO price.
Bitcoin recently pulled back from record highs set Wednesday.
Today’s earnings slate features JD.com, Advance Auto Parts, Applied Materials, and Nucor.
Friday’s retail sales release will conclude a week dominated by macroeconomic data.
11.51 am: Bitcoin treasury stocks in demand
UK-listed bitcoin treasury stocks were in demand on Thursday as the cryptocurrency traded just above $121,600, having retreated from its record $123,500.
The pullback came after a rally fuelled by institutional buying, spot ETF inflows, and public companies adding bitcoin to their balance sheets in the style of MicroStrategy.
Bitcoin is up 31% this year and 60% since April’s lows, with sentiment buoyed by expectations of US interest rate cuts in September and the Trump administration’s pro-crypto stance.
Last week, President Trump ordered the US Labor Department to explore allowing retirement plans to hold cryptocurrencies, a move that could broaden retail access.
Ethereum also edged near record highs this week, climbing above $4,700 as interest builds in its blockchain’s role in decentralised finance and stablecoins.
Ether has risen over 50% since the recent passage of the GENIUS Act, with corporate treasuries increasing allocations.
In London, treasury stocks The Smarter Web Company, London BTC Company Ltd and Vaultz Capital PLC were up between 1%-5% in morning trading.
10.50 am: UK GDP gets a surprise boost. But the shine fades on closer look
The UK economy pulled off another upside surprise in Q2, growing 0.3% versus Deutsche Bank’s forecast for a near stall. In fact, the bank notes the unrounded figure was 0.345% (almost an even stronger print) putting the UK on track to be the G7’s second-fastest grower this year, after topping the table in Q1.
Scratch beneath the surface, though, and the picture is less rosy. Deutsche Bank points out that government spending did the heavy lifting, with public consumption and investment up 2%, adding half a percentage point to GDP.
Inventory building, likely linked to President Trump’s trade war, added another 0.2 points, while net trade surprised positively as exports rose 1.6% and imports 1.4%.
The weak spots? Household spending barely grew at 0.1%, and business investment slumped nearly 4% – signs of caution amid global uncertainty.
Still, Deutsche Bank says June’s strong print gives Q3 a healthy carry-over, with GDP likely to rise 0.2–0.3%.
The bank now sees upside to its 1.2% annual growth forecast, but warns that to sustain outperformance, Chancellor Rachel Reeves must pair productivity measures with efforts to lift household and business confidence.
9.45: Viva Aviva after strong results
Leading the gainers was Aviva, with a 5% jump, after the insurer posted strong first-half results and said its newly acquired Direct Line business is integrating “at pace” following completion last month.
Adjusted operating profit climbed 22% to £1.07 billion, prompting a 10% rise in the interim dividend to 13.1p per share.
The FTSE 100 pared its already-modest losses to stand almost at parity
8.15 am: A nudge into the red
And we're off... and into the red. Against the backdrop of surging US markets, the Footsie opened 20 points lower, defying pre-market predictions of a positive start to proceedings.
In economic news, growth slowed in the second quarter but still outpaced forecasts, according to the Office for National Statistics (ONS).
Gross domestic product rose 0.3% between April and June, down from 0.7% in the first quarter but above the 0.1% expected. Services provided the biggest lift, with construction output up 1.2%, aided by hot, dry weather.
More worryingly, the ONS revised April’s GDP figure, showing a smaller 0.1% contraction versus the 0.3% previously estimated, while June outperformed expectations.
Economists said the resilience came despite a drag from fading first-quarter boosts, including pre-tariff stockpiling by firms and a stamp duty rush.
Chancellor Rachel Reeves called the numbers “positive” but stressed more work was needed. Opposition parties criticised both the pace of growth and government policy.
Analysts warned momentum could weaken, citing global headwinds, April’s tax rises and uncertainty over further fiscal tightening.
7.13 am: Slow, but positive start predicted
The FTSE 100 looks set for another quiet day, in keeping with its progress over the trading week.
The blue-chip index is set to open 15 points higher at 9,180.23, largely ignoring the record performance of the S&P 500 after hours and the 400-point gain of the Dow Jones, both of which have been buoyed by the prospect of a rate cut by the Fed.
Asia's main markets have been mixed, with Australia up and the Nikkei and Hang Seng in reverse gear.