FTSE ends poor week on a positive
Most major stocks in the United Kingdom saw solid gains during the last trading session of the week after it emerged that the gross domestic product for the nation had increased more than expected during the second quarter. The figure had originally been set at 0.6% but was revised to 0.7% today. The original figure had already beaten analysts expectations to the period and led to significant advances for both the pound sterling and stocks listed on the London Stock Exchange.
The FTSE 100 advanced by 45.23 points, or 0.7%, bringing a poor week of trading in London to a close with a loss of just 0.1% over the course of the five days. The markets have been heavily influenced by the current guessing games taking place in the United States and around the Federal Reserve and their plans for their monetary stimulus in the relatively near future. This has led to an extremely volatile trading environment for UK investors that have seen the London blue-chip consistently move within a 2% range over the last week.
Ishak Siddiqi of ETX Capital offered his view on the current situation in London, saying “The FTSE 100 is stuck in a range it is difficult to see it popping out amid persistent tapering talk volatility… All facets of the UK economy have gathered steam but the FTSE 100 will need to break above 6520 to carry on its rally.” Another spread betting broker, CMC Markets signalled similar sentiment.
Gross Domestic Product
The expansion of the gross domestic product in the United Kingdom during the second quarter has now seen the GDP for the region more than double from the first quarter’s 0.3% to 0.6%, and now 0.7%. The growth has been relatively consistent across the board with exports seeing a significant increase. The revision also saw expansions in manufacturing, services and construction.
Further improvements to the UK economy’s performance over the last six months have once again fuelled much confidence in investors who now feel that the British economy is finally heading towards sustainable prosperity after five years of economic turmoil.
Movers and Shakers
Croda International led the foot seeing gains today after an impressive advanced by 110 points, or 4.29%, on the back of an upgrade from Deutsche Bank, who raised their rating to “buy”. Marks & Spencer’s where the second biggest advance of the day, adding 12.30 points, or 2.68%, bouncing back from their slump over the last nine days. M&S were not the only retailers to see healthy gains, with J Sainsbury, Morrisons and Tesco registering advances of 2.55%, 2.31%, and 1.83% respectively.
At the other end of the scale, Aggreko fell by almost 3 times as much as any other company listed on the FTSE 100 during the final session of the week. The temporary power generators slid by 48.00 points, or 2.90%, to close the week at 1607.00. Budget airline easyJet also slid by 12.00 points, or 0.94%, to end the week at 1265.00 points.