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(Alliance News) - Stock prices in London opened higher on Friday, lifted by an unexpected upward revision to UK gross domestic product figures, revealing unexpected second-quarter growth.
The FTSE 100 index opened up 36.06 points, 0.5%, at 6,917.65. The FTSE 250 opened up 175.33 points, 1.0%, at 16,965.73, and the AIM All-Share opened up 2.05 points, 0.3%, at 800.44.
The Cboe UK 100 opened up 0.8% at 691.21, the Cboe UK 250 opened up 0.9% at 14,502.26, and the Cboe Small Companies opened marginally lower at 12,577.34.
In European equities on Friday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was 0.9% higher.
The UK economy is now estimated to have grown 0.2% in the second quarter from the first, according to the Office for National Statistics. This compares with a previous estimate that had indicated a 0.1% contraction.
Consensus, according to FXStreet, had not been expecting any revision to the figures.
This follows 0.8% growth in the first quarter from the final quarter of 2021.
On an annual basis, gross domestic product grew by 4.4% in the second quarter. This compares with a previous estimate of just 2.9%.
It is still a sharp slowdown from the 8.7% annual growth seen in the first quarter, however.
The second quarter GDP growth defies the Bank of England's prediction of a recession as early as the third quarter. The BoE last week said the UK economy will shrink 0.1% in the third quarter. Had it also declined in the second, it would have met a basic definition of a recession - being two successive quarters of economic decline.
The pound was quoted at USD1.1036 at the London equities open Friday, slightly higher compared to USD1.1033 at the close on Thursday.
The euro stood at USD0.9802 at the European equities open Friday, higher against USD.9781
Against the yen, the dollar was trading at JPY144.38, down from JPY144.48 late Thursday.
UK Prime Minister Liz Truss and Chancellor Kwasi Kwarteng will meet with the head of the Office of Budget Responsibility on Friday, in the latest effort by the pair to reassure markets and voters that the economic turmoil of recent days is under control.
Treasury and Downing Street sources hit back at suggestions it was an emergency meeting, but it comes after days of chaos in the financial markets and fears of rocketing mortgage bills sparked by the chancellor's mini-budget last week.
The pair will meet with Richard Hughes, the head of the independent spending watchdog pushed to the fore amid the political and economic fallout from Friday's mini-budget.
Meanwhile, UK house price growth ebbed slightly, slowing to single digits in September, according to the latest figures from Nationwide on Friday.
On an annual basis, prices grew by 9.5% in September. This undershot consensus, cited by FXStreet, which had growth to remain at its August level of 10%.
Month-on-month, prices were flat in September. In August, they had edged up 0.7% from July.
Stocks were faring well on Friday, with housebuilders leading the way. Barratt Developments was up 4.7%, Taylor Wimpey gained 3.7% and Persimmon rose 3.8%.
The stocks have still had a tough week of trading, however.
Also on the up was chemicals firm Synthomer, rising 6.7%.
It was clawing back some lost ground after it lowered annual earnings guidance on Thursday. It had closed down 48%.
At the other end of the midcaps was Pennon, down 1.8%. The water utility said it traded in line with expectations in the first half ended September 30, despite tough macro-economic conditions.
It hailed its progress in achieving on outcome delivery incentives. "South West Water delivered the second highest ODI performance in the sector for 2021/22, and as a group we are on track for a net positive ODI outcome in 2022/23," Pennon added.
On AIM, Restore was up 2.9%, as it signed its largest contract to date. The document management and IT recycling business has been picked to manage the BBC's archive of entertainment-related assets.
The deal has an expected value of GBP22 million over 10 years, Restore said.
Catenae Innovation shares sunk 46%, as its shares resumed trading after a suspension. It released its delayed results for the year ended September 30, 2021.
The Newcastle-based digital media and technology company's pretax loss widened to GBP1.2 million from GBP769,186 year-on-year. Revenue improved to GBP30,210 from GBP14,948.
Stocks in the Asia Pacific region were mostly weaker on Friday. The Nikkei 225 in Tokyo closed down 1.8%, while the S&P/ASX 200 in Sydney ended down 1.2%. In China, the Shanghai Composite closed 0.5% lower, while the Hang Seng in Hong Kong edged up 0.2%.
Brent oil was quoted at USD88.39 a barrel at the London equities open Friday, down from USD88.71 late Thursday. Gold was quoted at USD1,670.48 an ounce, up against USD1,658.20.
Still to come on Friday's economic calendar, are eurozone inflation and unemployment figures at 1000 BST.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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