London open: Stocks edge down after GDP data
London stocks edged lower in early trade on Wednesday as investors digested weaker-than-expected UK growth figures.
At 0900 GMT, the FTSE 100 was down 0.3% at 7,278.41.
Victoria Scholar, head of investment at Interactive Investor, said: "The FTSE 100 opened on a softer note, giving back some of yesterday’s gains amid a mixed picture for broader European indices. This the first calm moment of the week for equity markets after Monday’s wobble and yesterday’s recovery as Christmas draws closer."
Data released earlier by the Office for National Statistics showed the economy grew less than initially thought in the third quarter, even before the Omicron Covid variant hit.
GDP rose 1.1%, coming in weaker than the initial estimate for growth of 1.3%. It was also a marked slowdown from the 5.4% growth seen in the in the second quarter, when restrictions were lifted.
Still, significant upward revisions to 2020 data meant that GDP was 1.5% below where it was at the end of 2019, revised up from a previous estimate of 2.1% below.
ONS Director of Economic Statistics Darren Morgan said: "Our revised figures show UK GDP recovered a little slower in the third quarter, with much weaker performances from health and hairdressers across the quarter, and the energy sector contracting more in September, than we previously estimated.
"However, stronger data for 2020 means the economy was closer to pre-pandemic levels in the third quarter."
Bethany Beckett, UK economist at Capital Economics, said these data are old news and predate the recent surge in virus infections caused by the Omicron variant.
"That already seems to have prompted a weakening of activity in December. And, although the economy has got better at coping with restrictions with each new wave, the possibility of tighter restrictions in January is further darkening the outlook for GDP," she said.
In equity markets, miners were among the worst performers, with Rio Tinto, BHP and Anglo American all weaker.
On the upside, Syncona surged to the top of the FTSE 250 after saying it had sold its portfolio company Gyroscope Therapeutics Holdings to Novartis for up to $1.5bn (£1.1bn) on a cash and debt free basis.
Market Movers
FTSE 100 (UKX) 7,278.41 -0.26%
FTSE 250 (MCX) 22,861.93 0.18%
techMARK (TASX) 4,492.18 0.18%
FTSE 100 - Risers
Rightmove (RMV) 776.20p 1.60%
Dechra Pharmaceuticals (DPH) 5,035.00p 1.35%
Smith & Nephew (SN.) 1,265.00p 1.24%
Auto Trader Group (AUTO) 716.00p 1.13%
Burberry Group (BRBY) 1,765.50p 0.97%
Hikma Pharmaceuticals (HIK) 2,222.00p 0.86%
Rolls-Royce Holdings (RR.) 115.50p 0.82%
Halma (HLMA) 3,103.00p 0.75%
Pearson (PSON) 603.40p 0.73%
Aveva Group (AVV) 3,309.00p 0.73%
FTSE 100 - Fallers
Rio Tinto (RIO) 4,808.00p -1.94%
National Grid (NG.) 1,069.00p -1.46%
BHP Group (BHP) 2,170.50p -1.14%
International Consolidated Airlines Group SA (CDI) (IAG) 138.52p -1.04%
Anglo American (AAL) 2,941.00p -0.88%
United Utilities Group (UU.) 1,094.00p -0.86%
Tesco (TSCO) 286.05p -0.85%
Pershing Square Holdings Ltd NPV (PSH) 2,985.00p -0.83%
Associated British Foods (ABF) 1,981.00p -0.80%
Vodafone Group (VOD) 112.38p -0.78%
FTSE 250 - Risers
Syncona Limited NPV (SYNC) 216.50p 8.25%
Micro Focus International (MCRO) 391.10p 2.62%
Provident Financial (PFG) 336.00p 2.31%
Chrysalis Investments Limited NPV (CHRY) 229.00p 2.23%
Future (FUTR) 3,644.00p 1.96%
WH Smith (SMWH) 1,417.50p 1.61%
Indivior (INDV) 255.60p 1.59%
Baillie Gifford US Growth Trust (USA) 321.50p 1.58%
Auction Technology Group (ATG) 1,438.00p 1.55%
Games Workshop Group (GAW) 9,895.00p 1.54%
FTSE 250 - Fallers
Mitie Group (MTO) 60.60p -2.26%
Johnson Matthey (JMAT) 1,950.00p -1.69%
Aston Martin Lagonda Global Holdings (AML) 1,269.50p -1.67%
Harbour Energy (HBR) 357.20p -1.49%
Hochschild Mining (HOC) 129.40p -1.37%
Edinburgh Worldwide Inv Trust (EWI) 295.50p -1.34%
Energean (ENOG) 858.00p -1.27%
Herald Investment Trust (HRI) 2,370.00p -1.04%
FirstGroup (FGP) 100.30p -0.99%
Wood Group (John) (WG.) 185.65p -0.99%