London open: Stocks edge up despite uninspiring GDP data

London stocks edged higher in early trade on Thursday despite uninspiring UK GDP data, taking their cue from a solid session on Wall Street.

At 0830 GMT, the FTSE 100 was up 0.3% at 7,519.27.

Victoria Scholar, head of investment at Interactive Investor, said: "Markets are attempting a last-ditch effort to achieve a Santa rally with Wall Street closing significantly higher last night. Better-than-expected US corporate earnings helped to spur a pick-up in risk appetite which when combined with lighter-than-normal volumes around the holidays resulted in US averages posting their best session since November and the Hang Seng jumping over 2.5%."

On home shores, figures released earlier by the Office for National Statistics showed that the economy contracted more than first estimated in the three months to September as household incomes fell.

GDP shrank 0.3% in the third quarter, versus an initial estimate of a 0.2% contraction. The figures showed that household incomes fell by 0.5% during the quarter - the fourth consecutive quarter of negative growth.

The revised data also showed that the economy grew 0.6% in the first quarter and 0.1% in the second, down from previous estimates of 0.7% and 0.2% growth, respectively.

The revisions reflect bigger falls in manufacturing and production than previously estimated. It was suggested that this might reflect changes in business and consumer behaviour in response to higher energy prices after the regulator's energy price cap rose in April.

The ONS said business investment declined 2.5% in quarterly terms, compared with an initial estimate of a 0.5% fall.

ONS director of economic statistics Darren Morgan said: "Our revised figures show the economy performed slightly less well over the last year than we previously estimated, with manufacturing and electricity generation notably weaker.

"Household incomes continued to fall in real terms, albeit at a slower rate than in the previous two quarters, while - taking account of inflation - household spending fell for the first time since the final Covid-19 lockdown in the spring of 2021."

Corporate news was thin on the ground as we head towards the Christmas break, but electronics maker discoverIE Group announced the acquisition of US-based Magnasphere Corporation for $22m (£19.1m).

Magnasphere makes magnetic sensors and switches for industrial electronic applications. DiscoverIE said the acquisition is expected to be immediately accretive to group underlying earnings and underlying operating margin.

Elsewhere, LondonMetric was knocked lower by a downgrade to 'neutral' at Citi.

Market Movers

FTSE 100 (UKX) 7,519.27 0.29%
FTSE 250 (MCX) 18,888.75 0.13%
techMARK (TASX) 4,407.24 0.36%

FTSE 100 - Risers

Prudential (PRU) 1,108.00p 1.42%
Kingfisher (KGF) 235.60p 0.94%
Lloyds Banking Group (LLOY) 46.68p 0.94%
Croda International (CRDA) 6,710.00p 0.90%
St James's Place (STJ) 1,118.50p 0.90%
Hargreaves Lansdown (HL.) 863.40p 0.89%
Admiral Group (ADM) 2,094.00p 0.87%
B&M European Value Retail S.A. (DI) (BME) 419.30p 0.87%
International Consolidated Airlines Group SA (CDI) (IAG) 130.66p 0.83%
JD Sports Fashion (JD.) 121.15p 0.83%

FTSE 100 - Fallers

United Utilities Group (UU.) 1,002.50p -1.52%
British American Tobacco (BATS) 3,311.50p -1.25%
Airtel Africa (AAF) 112.00p -0.53%
Mondi (MNDI) 1,418.50p -0.46%
SEGRO (SGRO) 763.80p -0.31%
Weir Group (WEIR) 1,702.00p -0.29%
Ashtead Group (AHT) 4,786.00p -0.23%
AstraZeneca (AZN) 11,220.00p -0.21%
InterContinental Hotels Group (IHG) 4,792.00p -0.19%
Pershing Square Holdings Ltd NPV (PSH) 2,905.00p -0.17%

FTSE 250 - Risers

Oxford Instruments (OXIG) 2,275.00p 4.60%
Hammerson (HMSO) 23.69p 2.20%
Discoverie Group (DSCV) 747.00p 2.19%
Coats Group (COA) 72.90p 1.96%
Wizz Air Holdings (WIZZ) 2,106.00p 1.94%
Tullow Oil (TLW) 38.70p 1.90%
Helios Towers (HTWS) 105.70p 1.83%
Ascential (ASCL) 200.80p 1.67%
Drax Group (DRX) 686.50p 1.63%
Currys (CURY) 58.00p 1.58%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 151.80p -3.22%
Britvic (BVIC) 788.50p -2.59%
LondonMetric Property (LMP) 169.90p -2.41%
WH Smith (SMWH) 1,460.00p -1.82%
Assura (AGR) 52.65p -1.59%
Scottish American Inv Company (SAIN) 500.00p -1.38%
Alliance Trust (ATST) 932.00p -1.38%
Future (FUTR) 1,250.00p -1.11%
Diversified Energy Company (DEC) 116.70p -1.10%
Darktrace (DARK) 268.80p -0.96%