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London’s blue chip index outperformed its peers in Paris and Frankfurt on Thursday morning as the UK’s economy climbed more than anticipated in November; meanwhile investors await trade balance data from the eurozone. The FTSE 100 index opened up 8.34 points, 0.1%, at 10,193.06. The FTSE 250 was up 66.08 points, 0.3%, at 23,023.39, and the AIM All-Share was up 1.02 points, 0.1%, at 802.71. The Cboe UK 100 was up 0.2% at 10,20.83, the Cboe UK 250 was up 0.5% at 20,119.35, and the Cboe Small Companies was up 0.3% at 18,073.05. UK gross domestic product rose in November, increasing 0.3% from October and beating FXStreet expectations for a 0.1% rise, according to figures from the Office for National Statistics. The monthly gain reversed a 0.1% decline in October and was driven by a 0.3% rise in services output and a 1.1% jump in production. Over the three months to November, GDP grew 0.1%, improving from flat growth in the previous rolling period. Services output also expanded 0.2% on a three-month basis, providing the largest contribution to overall activity. Production slipped 0.1% over the same period, held back by a sharp fall in the manufacture of motor vehicles. Construction activity remained a drag on the economy, with output down 1.3% in November and falling 1.1% over the three months, marking its weakest run since March 2023. UK trade figures for November showed a mixed performance, with exports rising and imports falling, the ONS said. Goods exports increased by £600 million, or 1.9%, driven by higher shipments to both EU and non-EU markets. Goods imports declined by £600 million, down 1.1%, as lower purchases from non-EU countries offset an increase in imports from the EU. Trade with the US weakened notably during the month. Exports of goods to the US, including precious metals, fell by £500 million, or 10%, while imports from the US declined by £900 million, or 12%. On a three-month basis to November, the UK’s total trade deficit in goods and services widened by £2.7 billion to £6.1 billion. The trade in goods deficit increased by £3.4 billion to £58.9 billion, while the trade in services surplus rose by £700 million to £52.8 billion. Anna Kortis, partner at McKinsey & Co, said November’s 0.3% growth in UK GDP suggests the economy may be ‘finding a floor’. ‘Part of GDP growth is influenced by foreign investment, and it is here that there could be green shoots of opportunity,’ she said. ‘Our new research shows the UK is now the world’s third-largest destination for announced greenfield foreign direct investment, attracting around $85 billion a year since 2022. There’s huge potential for large investments in communications and software as a net result of advances in artificial intelligence, which can act as new stimulus for growth. ‘The test now is conversion. Whether modest growth strengthens over time will depend largely on how effectively foreign investment translates into productive capacity, higher productivity, and more durable economic expansion.’ The pound was quoted at $1.3442 early Thursday, lower than $1.3450 at the London equities close on Wednesday. The euro traded at $1.1633 early Thursday, lower than $1.1650 late Wednesday. Against the yen, the dollar was quoted at JP¥158.67, up versus JP¥158.25. In European equities on Thursday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was 0.1% lower. French consumer price inflation slowed sharply on an annual average basis in 2025, easing to its weakest level in four years, official data showed on Thursday. Consumer prices rose by an annual average of 0.9% in 2025, slowing from 2.0% in 2024, figures from Insee showed. This followed two years of elevated inflation of 4.9% in 2023 and 5.2% in 2022. Excluding tobacco, prices also increased by 0.9% in 2025, compared with 1.8% in 2024. On a harmonised basis, which allows for EU-wide comparison, inflation averaged 0.9% in 2025, down from 2.3% in 2024 but above the earlier flash estimate of 0.7%. German wholesale prices rose at a slower annual pace in December, while falling on the month, as lower energy costs partly offset sharp increases in metals and food prices, official data showed on Thursday. Figures from the Federal Statistical Office showed wholesale selling prices were 1.2% higher in December than a year earlier, easing from a 1.5% annual increase in November and following a 1.1% rise in October. On a monthly basis, wholesale prices fell 0.2%, confounding FXStreet-cited expectations for a 0.2% rise and following a 0.3% increase in November. Meanwhile, Germany avoided a third consecutive year of recession in 2025, while contractions in 2023 and 2024 were worse than previously reported, preliminary data published by the Federal Statistical Office showed. The country’s gross domestic product increased by 0.2% in 2025, after a fall of 0.5% in 2024. However, 2024’s decline was revised down from a decline of 0.2%, while 2023’s fall was revised down to 0.9% from a contraction of 0.3%, both compared to figures the office released a year ago. ‘After two years of recession, the German economy edged back into growth. The growth is primarily attributable to increased household final consumption expenditure and government final consumption expenditure’, said Ruth Brand, president of the Federal Statistical Office. In Asia on Thursday, markets were mostly lower. The Nikkei 225 in Tokyo fell 0.4%, while the Shanghai Composite and the Hang Seng Index in Hong Kong both dropped 0.3%. The S&P/ASX 200 in Sydney closed up 0.5%. In the US on Wednesday, Wall Street ended lower. The Dow Jones Industrial Average slipped 0.1%, the S&P 500 fell 0.5%, and the Nasdaq Composite dropped 1.0%. The yield on the US 10-year Treasury was quoted at 4.15%, widening from 4.14%. The yield on the US 30-year Treasury was quoted at 4.80%, unchanged. Back in London, Schroders was the top performer on the FTSE 100, up 8.5%, after saying it expects full-year adjusted operating profit to be ahead of market expectations, supported by stronger fee income and tighter cost control in 2025. The London-based asset manager forecast adjusted operating profit of at least £745 million for 2025, up 24% from £603.1 million a year earlier. This implies second-half adjusted operating profit of around £429 million, which Citi analyst Nicholas Herman said is 25% ahead of Visible Alpha consensus of £343 million. Ashmore topped the FTSE 250, up 15% after reporting that net flows were spread across fixed income and equities, reflecting investor interest in emerging markets. The asset manager said assets under management rose by $2.6 billion in net flows and $1.2 billion from positive performance in the second quarter of financial 2026. Total assets under management stood at $52.5 billion at December 31, up from $48.7 billion at September 30. Gold was quoted at $4,604.20 an ounce early on Thursday, lower than $4,621.15 on Wednesday. Brent oil was trading at $64.48 a barrel, down from $65.97 late Wednesday. Still to come on Thursday’s economic calendar are Ireland’s CPI and trade balance, the eurozone trade balance and industrial production, US weekly jobless claims and retail sales, Canada manufacturing and wholesale sales, and US business inventories. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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