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(Alliance News) - Stock prices in London opened higher on Friday as fresh data painted a slightly brighter picture for the UK economy.
The FTSE 100 index opened up 56.92 points, or 0.8%, at 7,659.00. The FTSE 250 was up 188.01 points, or 1.0%, at 18,286.69, and the AIM All-Share was up 2.26 points, or 0.3%, at 727.24.
The Cboe UK 100 was up 0.7% at 764.30, the Cboe UK 250 was up 1.2% at 15,958.10, and the Cboe Small Companies was up 0.8% at 13,318.00.
According to a second estimate from the Office for National Statistics, UK gross domestic product increased 0.2% against the prior quarter in second quarter of 2023. This was unchanged from an earlier estimate.
Meanwhile, GDP in the first quarter of the year was upwardly revised to a quarter-on-quarter increase of 0.3%, from a previous estimate of a 0.1% increase.
Richard Carter, head of fixed interest research at Quilter Cheviot said the data gives some hope that a recession in the UK can still be avoided.
"There are bright spots in today's report from the Office for National Statistics, as recession appears increasingly unlikely in 2023. This will bring some respite to the pound, which has taken a bit of a battering in recent days as interest rates are predicted to have peaked," he said.
The pound was quoted at USD1.2243 at early on Friday in London, up from USD1.2209 at the London equities close on Thursday.
In London, Severn Trent added 3.1% in early morning trade after it proposed "record" levels of investment in its new business plan for April 1, 2025 to March 31, 2030.
The water utility said the plan includes GBP12.9 billion total expenditure across its network, including GBP5.0 billion of investment focused on enhancing capacity and service beyond current levels.
"By 2030 we will have transformed our network to provide our customers with the very best service. At the heart of this ambition is a commitment to a sustainable future - from healthier rivers, to providing thousands of jobs, fewer leaks and a water supply ready for the impacts of climate change and population growth," said Chief Executive Liv Garfield.
Separately, the company proposed an equity issue to raise GBP1 billion.
In the FTSE 250, Aston Martin jumped 9.6% after the Yew Tree Consortium has agreed to purchase an additional 26 million shares in the company, increasing its total stake in the firm to 26.2%.
Future surged 11% as it said its adjusted operating profit in the year ended September 30 is expected to be in line with board expectations of GBP254.1 million.
The company owns names including Marie Claire, Country Life, Money Week said that audience numbers have stabilised in the second half of its financial year, noting positive month-on-month momentum in the final quarter.
However, Future said trading conditions overall remain "mixed" with challenges in consumer spending and the digital advertising market.
Elsewhere in London, Victoria rose 3.6%.
The flooring designer, manufacturer and distributor Victoria said its strong outlook and positive annual results for the year ended April 1 have been overshadowed by a "considerable reaction" to its auditor's qualified opinion deriving from incomplete accounting records at its subsidiary, Hanover Flooring - a business which it said represents less than 1.25% of group turnover.
Victoria stressed that there was "no wrong-doing whatsoever" at Hanover that impacts the firm's financial statements. It explained that Hanover's issue was "predominantly one of having heightened financial risk due to inadequate accounting records associated with no more than GBP400,000 of customer receipts."
Chair Geoff Wilding commented: "From the extensive work undertaken by ourselves and a 'Big-Four' accounting advisor, we are very clear that all payments due have been received, no money is unaccounted for and Victoria has suffered no loss. We are also very clear that there are no other such concerns across the rest of the group and our auditors have confirmed that these accounts give a true and fair view of the company."
Returning to its current trading, Victoria confirmed that its first quarter was in line with forecasts and consistent with consensus expectations for financial 2024.
In European equities on Friday, the CAC 40 in Paris and the DAX 40 in Frankfurt were both 0.4% higher.
The latest eurozone inflation print will be released at 1000 BST.
According to FXStreet-cited consensus, harmonized consumer price inflation is expected to cool to a 4.5% rise in September on an annual basis, from a 5.2% rise in August.
Analysts at Lloyds Bank said that, should the data cool as predicted, the numbers will add to expectations that European Central Bank interest rates have "probably peaked" with the focus shifting to how long rates will remain in restrictive territory.
In Tokyo on Friday, the Nikkei 225 index closed flat. The S&P/ASX 200 in Sydney closed up 0.3%. In China, the Shanghai Composite was closed for trading due to the Mid-Autumn festival, while the Hang Seng index in Hong Kong was up 2.9%.
In the US on Thursday, Wall Street ended higher with the Dow Jones Industrial Average up 0.4%, the S&P 500 up 0.6% and the Nasdaq Composite up 0.8%.
The dollar lost some of its recent steam on Friday morning ahead of the release of August's US personal consumption expenditure numbers at 1330 BST.
The euro stood at USD1.0594 early Friday morning in London, higher against USD1.0568 at the time of the London equities close on Thursday. Against the yen, the dollar was trading at JPY148.68, lower compared to JPY149.36.
Brent oil was quoted at USD93.19 a barrel early in London on Friday, down from USD94.09 at the London equities close on Thursday. Gold was quoted at USD1,871.25 an ounce, higher against USD1,861.02.
By Heather Rydings, Alliance News senior economics reporter
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