The FTSE 100 looks set to end the week on the front foot and the pound also made progress in early trading as second quarter GDP figures were revised upwards showing the UK was not yet in recession.
London’s blue-chip index was trading 50 points higher at 6,931 in early trade while the pound was up 0.35% at US$1.1154.
Investors took some hope that a meeting between prime minister, Liz Truss, and the Office for Budget Responsibility would lead to an earlier publication of economic forecasts that would flesh out the government’s fiscal plans.
News that the UK economy did not shrink in quarter two was also welcome although it was accompanied by downward revisions to growth in 2020 meaning the UK economy was still below pre-pandemic levels.
Housebuilders topped the charts on the FTSE 100 after recent hefty falls, with Barratt Developments, Persimmon and Taylor Wimpey all making strong gains.
Exporters were amongst the fallers on the lead index following the bounce in the pound with Unilever and Reckitt Benckiser trading lower.