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FTSE 100 up 0.8%, FTSE 250 adds 1.7%.
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The FTSE 100 is set for a 2nd consecutive quarterly decline since 2018
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Joules’ focus on profitability is making headway
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UK Q2 GDP better than expected
Sept 30 (Reuters) – Britain’s FTSE 100 rose on Friday, lifted by battered energy and banking stocks as market sentiment improved after data showed Britain’s economy performed better expectations in the second quarter.
The export-oriented index rose 0.8% 0837 GMT, while the mid-cap FTSE 250 rose 1.7%.
The Office for National Statistics said economic output rose an unexpected 0.2% from April to June, revised up from a previous reading of a 0.1% contraction, but remained below from its pre-pandemic peak.
“While that really doesn’t change anything, it does mean the economy is suddenly on firmer footing and may not be in a technical recession,” said Craig Erlam, senior market analyst at Oanda.
The energy sector rose 1.3%, supported by oil prices which rose on the possibility of OPEC+ crude production cuts.
Banks gained 1.5%.
Markets rose on the final day of a week that has seen financial chaos grip UK markets following what analysts call a political tussle between the government and the central bank.
“Financials move with the risk appetite in the market. Any kind of stabilization usually results in good performance for financials,” Erlam added.
“So I think central bank intervention has provided some stability and has stopped the bleeding to some extent.”
Stock markets around the world have been hit this year by fears that an aggressive tightening of monetary policy to curb inflation could tip economies into recession. The FTSE 100 has lost 6.2% so far in 2022 and is on course for its second consecutive quarterly decline.
The more domestically-focused FTSE 250 fell 8.6% in the July-September period and is set to register its third consecutive quarterly decline, which would be its longest losing streak since 2008. For the month, it lost 10.5%.
Joules Group jumped 37.8%, like the rest of the sector, as the struggling British retailer said its turnaround plan, focused on improving profitability, was progressing well. (Reporting by Johann M Cherian Bengaluru; editing by Anil D’Silva and Neha Arora)