FTSE 100 avoids steep drop after GDP figures disappoint
T
he FTSE 100 managed to bounce again on Wednesday from the hit it took earlier within the day after the news that the economic system had shrunk extra quickly than anticipated in July.
By the top of the day a powerful efficiency from banks Barclays and HSBC, in addition to some housebuilders, helped the FTSE end roughly flat
It closed down simply 0.02%, a 1.54 level drop that left the index at 7,525.99.
The index had earlier fallen as little as 7,490 after information from the Office for National Statistics revealed that the UK’s gross home product (GDP) fell by 0.5% in July, following a similar-sized rise the month earlier than.
Economists anticipated GDP to have fallen through the month however solely by 0.2%.
Shares had additionally been led downwards by oil big BP, whose boss resigned on Tuesday night in a shock transfer.
Questions nonetheless stay over Bernard Looney’s departure. The firm stated that he had in 2022 disclosed “a small number of historical relationships with colleagues”.
But Mr Looney later admitted he had not been completely clear and stepped down from his position.
The pound remained roughly flat in opposition to the greenback, ending the day at round 1.249.
Germany’s Dax and France’s Cac 40 each closed down 0.4%. In New York the S&P 500 gained 0.3% whereas the Dow Jones was up 0.2%.
In firm news Redrow stated that its earnings would possibly greater than halve attributable to a difficult property market.
The housebuilder stated that pre-tax revenue was down 4% to £395 million within the yr to the beginning of July with earnings additionally down barely.
But it warned that worse was to come back. Next yr revenue is predicted to drop to between £180 million and £200 million.
The greatest risers on the FTSE 100 have been Melrose Industries, up 21.9p to 501.2p, Aviva, up 17.2p to 393.5p, Persimmon, up 41p to 1,064p, Taylor Wimpey, up 2.85p to 118p, and Berkeley Group, up 99p to 4,100p.
The greatest fallers on the FTSE 100 have been Ocado, down 32.6p to 769p, IAG, down 4.55p to 153.8p, BP, down 14.6p to 508.2p, JD Sports, down 3.45p to 137p, and Halma, down 49p to 2,115p.