London open: Stocks dip as investors mull GDP data

London stocks nudged lower in early trade on Friday as investors mulled the latest UK GDP data.

At 0820 BST, the FTSE 100 was down 0.1% at 8,230.93.

Figures released earlier by the Office for National Statistics showed the UK economy returned to growth in August.

GDP rose 0.2% following no growth in June and July, in line with economists’ expectations.

Services output grew 0.1% in August following an increase of 0.1% in July, while production output rose 0.5% following a revised 0.7% decline the month before.

Output in construction was up 0.4% in August following a 0.4% drop In July.

ONS director of economic statistics, Liz McKeown, said: "All main sectors of the economy grew in August, but the broader picture is one of slowing growth in recent months, compared to the first half of the year.

"In August, accountancy, retail and many manufacturers had strong months, while construction also recovered from July's contraction. These were partially offset by falls in wholesaling and oil extraction."

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "The FTSE has opened down a touch, as investors digest news that the UK economy returned to growth in August. The Office for National Statistic’s estimates that real GDP grew by 0.2% after two months of stagnation. This small rebound in growth was largely expected, but the lacklustre reaction echoes global markets’ struggle to find a clear direction.

"That’s perhaps unsurprising given high levels of geo-political tension, an upcoming US election and continued concerns about growth in China."

In equity markets, Sainsbury’s was under the cosh after its biggest shareholder, Qatar Investment Authority, placed 109m shares in the supermarket chain.

The shares were placed via Goldman Sachs at 280p each, which is a discount of around 2.8% to the closing share price on Thursday.

BP edged lower as it followed sector rival Shell and said it expected third-quarter realised refining margins to hit operating profit by $0.4bn to $0.6bn and warned its oil trading result would be weak as it felt the impact of lower crude prices.

Jupiter Fund Management lost ground after it reported lower assets under management as clients pulled £1.6bn during the third quarter.

Recruiter Hays gained even as it said it expects earnings to be sequentially lower in the first half as a result of ongoing challenging market conditions, which resulted in a big drop in fees in the first quarter.

Indivior was also on the front foot, having tanked on Thursday after cutting its full-year revenue forecast for the second time following a weaker-than-expected third-quarter performance from Sublocade, its treatment of moderate to severe opioid use disorder.

Market Movers

FTSE 100 (UKX) 8,230.93 -0.08%
FTSE 250 (MCX) 20,692.07 -0.08%
techMARK (TASX) 4,775.83 0.03%

FTSE 100 - Risers

Vistry Group (VTY) 934.00p 3.66%
Fresnillo (FRES) 665.50p 1.76%
Pershing Square Holdings Ltd NPV (PSH) 3,580.00p 1.70%
Barratt Redrow (BTRW) 458.70p 1.17%
easyJet (EZJ) 501.80p 1.03%
Flutter Entertainment (DI) (FLTR) 18,365.00p 0.99%
JD Sports Fashion (JD.) 131.65p 0.88%
Persimmon (PSN) 1,586.50p 0.83%
Taylor Wimpey (TW.) 153.20p 0.82%
Intermediate Capital Group (ICG) 2,086.00p 0.68%

FTSE 100 - Fallers

Sainsbury (J) (SBRY) 274.40p -4.72%
BP (BP.) 405.50p -1.30%
British American Tobacco (BATS) 2,678.00p -0.81%
Tesco (TSCO) 356.80p -0.72%
Prudential (PRU) 684.20p -0.58%
Scottish Mortgage Inv Trust (SMT) 849.20p -0.54%
Intertek Group (ITRK) 5,000.00p -0.50%
BT Group (BT.A) 144.95p -0.48%
Croda International (CRDA) 4,066.00p -0.47%
Centrica (CNA) 119.65p -0.46%

FTSE 250 - Risers

Indivior (INDV) 601.50p 3.17%
Wizz Air Holdings (WIZZ) 1,274.00p 2.66%
Ninety One (N91) 195.00p 2.47%
Crest Nicholson Holdings (CRST) 180.00p 2.33%
Centamin (DI) (CEY) 152.00p 2.01%
Domino's Pizza Group (DOM) 302.20p 1.68%
Endeavour Mining (EDV) 1,728.00p 1.59%
Hochschild Mining (HOC) 192.80p 1.26%
Kainos Group (KNOS) 830.00p 1.10%
Playtech (PTEC) 746.00p 0.95%

FTSE 250 - Fallers

Moonpig Group (MOON) 213.00p -3.62%
Aston Martin Lagonda Global Holdings (AML) 108.10p -2.52%
Essentra (ESNT) 147.60p -2.38%
Bridgepoint Group (Reg S) (BPT) 312.20p -2.25%
Balfour Beatty (BBY) 423.80p -2.22%
Allianz Technology Trust (ATT) 364.00p -2.15%
Petershill Partners (PHLL) 213.00p -2.07%
PZ Cussons (PZC) 88.00p -1.90%
Ocado Group (OCDO) 396.60p -1.73%
Dr. Martens (DOCS) 54.30p -1.72%