Global stock markets bolstered as UK growth steady after recession

The blue-chip index was up 66.3 points, or 0.8%, to close at 8,347.35.

The FTSE 100 moved higher on Thursday but lagged behind its international peers (John Walton/PA) (PA Archive)

London’s FTSE 100 moved higher on Thursday, but lagged behind its international peers as global stock markets enjoyed a rebound.

The blue-chip index was up 66.3 points, or 0.8%, to close at 8,347.35, with financial and banking firms among the day’s biggest risers.

In a busy week for economic releases, new gross domestic product (GDP) data showed that the UK economy grew by 0.6% between April and June.

The figures show the economy continued its recovery from recession at the end of last year by eking out growth, led by the service sector.

Nevertheless, growth in June was flat which, which economists suggested could be good news for the Bank of England in its bid to take the heat out of the economy and get inflation under control.

Meanwhile, new data from the US showed better-than-expected retail sales in July, raising hopes that the world’s biggest economy could be swerving the risk of a recession.

Other top European share indices enjoyed an even bigger jump on Thursday.

In Frankfurt, the Dax was up 1.66% and in Paris, the Cac 40 closed 1.23% higher.

Over in the US, investors were in equally good spirits with the S&P 500 up about 1.4% and Dow Jones 1.2% higher.

The pound rose about 0.3% against the US dollar at 1.286 and 0.5% against the euro at 1.171.

The price of Brent crude oil surged by about 1.9% to 81.20 US dollars per barrel.

In company news, shares in Mecca Bingo owner Rank Group were given a boost after the company revealed it returned to a pre-tax profit over the past year.

The group had been hammered by Covid and the cost-of-living squeeze in recent years, so hailed its recovery and return to profitability.

It also said it had more visitors to its bingo halls and Grosvenor casinos over the past year, and that recent weeks had seen sales continue to improve. Shares in Rank closed 6.6% higher.

Elsewhere, insurance group Admiral moved to the top of the FTSE 100 after reporting soaring profits for the first half of the year.

The firm said stronger earnings and revenues were mainly driven by a 12% jump in its number of customers, which hit more than 10.5 million. Admiral shares jumped by more than a tenth in early trading, and settled in the afternoon to close 6.5% higher.

The biggest risers on the FTSE 100 were Admiral Group, up 183p to 2,993p, Standard Chartered, up 27.2p to 760.8p, JD Sports, up 3.55p to 126.5p, Pershing Square, up 100p to 3,634p, and WPP, up 19.4p to 708.4p.

The biggest fallers on the FTSE 100 were Rio Tinto, down 102p to 4,751p, Barratt Developments, down 7.8p to 541.4p, United Utilities, down 12p to 1,002.5p, Hikma Pharmaceuticals, down 14p to 2,074p, and National Grid, down 6.6p to 982.2p.