FTSE 100 Hits 4-Week High On Earnings, Growth Data

(RTTNews) - U.K.'s equity benchmark FTSE 100 climbed to a four-week high Thursday morning as stocks extended previous session's gains amid easing concerns about inflation, and some strong quarterly earnings updates. Data showing a faster pace of economic growth helped as well in lifting sentiment.

The FTSE 100, which climbed to 10,905.00, was up 39.04 points or 0.36% at 10,874.51 about half an hour before noon.

Burberry Group soared nearly 10%. The luxury fashion house reported a 225% jump in first-half adjusted operating profit.

Discount retailer B&M European Value Retail zoomed more than 17% after first-half sales, margins and profit beat forecasts.

3i Group gained about 6% after unveiling a new £750 million buyback programme and increasing its stake in its flagship investment,

Barratt Redrow moved up nearly 4%. Rolls-Royce Holdings rallied nearly 3% after announcing an accelerated £1.5 billion share buyback and reaffirming its 2026 guidance.

Weir, BT Group and Land Securities gained 2.2%-2.8%. Melrose Industries, Next, Lion Finance, Kingfisher, Imperial Brands, JD Sports Fashion, Rentokil Initial, National Grid, Balfour Beatty, Haleon and United Utilities advanced 1.3%-2%.

Mining stocks tumbled. Endeavour Mining fell more than 6%. Fresnillo dropped 2.1%, while Antofagasta and Anglo American Plc shed 1.6% and 1.1%, respectively.

ICG declined by about 2.5%. BAE Systems declined 1.3% despite the defense firm raising its free cash flow projection for the second time this year.

BHP fell more than 1% after appointing a former Macquarie banker as its finance chief. Wizz Air Holdings dropped nearly 1%. The low-cost airline warned of higher cost after profit for the first half of this fiscal year fell by two-thirds.

Babcock International, Polar Capital Technology, Coca-Cola HBC, BaE Systems and Scottish Mortgage also drifted notably lower.

Data from the Office for National Statistics showed UK's real gross domestic product grew 0.7% on a quarterly basis, following an increase of 0.5% in the second quarter. The rate came in line with expectations.

On the production-side, output in the services sector increased 0.9% and the production sector grew 0.1%, while the construction sector contracted 0.7%.

The expenditure-side breakdown showed that household consumption rose 0.6% driven by increases in transport and housing. Government spending also grew 0.6%.

The UK's trade deficit for goods and services was estimated at 1.3% of nominal GDP in the third quarter.

On a yearly basis, GDP expanded 1.9% in the third quarter, matching expectations. In September, the economy grew 0.2% after showing no growth in August, data showed.

Another report from ONS showed that the visible trade deficit widened to GBP 22.3 billion in September from GBP 19.6 billion in August.

The overall trade balance covering goods and services showed a deficit of GBP 5.13 billion compared to a GBP 2.57 billion shortfall in the previous month.