UK Returns to Growth

The FTSE 100 (^FTSE), European and US stocks were up by the close in London on Friday (11.10.24), following a GDP print that showed the UK economy returned to growth in August. Investors are also gearing up for Q3 earnings season, which begins in earnest today with reports by big US banks.

• The FTSE 100 (^FTSE) rose by 0.2% Germany’s DAX (^GDAXI) gained 0.7%. The CAC (^FCHI) was up 0.4% in Paris by the closing bell in Europe.
• The pan-European STOXX 600 (^STOXX) rose 0.5%.
• The Dow Jones Industrial Average (^DJI) was mostly flat at the open, paring deeper premarket losses as big bank financial updates rolled in. By mid-morning it had risen 0.8%. The S&P 500 (^GSPC) also opened mostly flat before tipping 0.6% higher, and the tech-heavy Nasdaq (^IXIC) opened down 0.3% before rising 0.2%, after closing out Thursday with small losses.
• Investors were combing through quarterly results from big Wall Street banks — the traditional starting gun for earnings season. In focus is the potential impact of the Fed’s pivot to rate cuts on lending margins, and thus on profit.
• JP Morgan (JPM), Wells Fargo (WFC), BlackRock (BLK), and BNY Mellon (BK) stocks rose in early trade.
• This morning, fresh data showed a 0.2% rise in GDP for the UK in August. The increase comes after two successive months of stagnation.

• The services sector grew 0.1%, while construction hit its stride with growth of 0.4% and production rose 0.5%, supported by manufacturing.

• “While change will not happen overnight, we are not wasting any time on delivering on the promise of change,” said chancellor Rachel Reeves. “Next week hundreds of the world’s biggest businesses will come to Britain as we deliver on our promise to bring investment, growth, and jobs back to every part of the country.”
• The pound gained 0.2% against the dollar (GBPUSD=X), after a week of losses. It is trading around the $1.31 mark having hit $1.34 at the end of September.

Source: Yahoo Finance