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(Alliance News) - Stock prices in London closed generally lower on Friday following the release of weaker-than-forecast economic growth figures and renewed focus on tensions between the US and China. The FTSE 100 index closed 0.4% lower at 7,253.85. The mid-cap FTSE 250 index ended lower 0.2% at 19,092.15, and the AIM All-Share index finished 0.1% higher at 886.02.For the week, the blue chips closed 4.5% lower. The mid-cap index finished down 2.8% and the All-Share 4.9% lower. The Cboe UK 100 closed down 0.4% at 12,271.70, the Cboe UK 250 down 0.3% at 16,976.30, and the Cboe UK Small Companies down 0.1% at 10,930.91.At the close Thursday, sterling continued its week long decline against the US dollar. The pound was quoted at USD1.2081 at the London close, from USD1.2145 late Thursday."Adding to the declines are the strained relations between the US and China, as President Trump claimed he 'won't be doing business with China'," CMC Markets UK Market Analyst David Madden said. In a statement at the White House, US commander-in-chief Donald Trump explained the US was "not ready" to do a deal with China but that "we'll see what happens." In particular, Trump stated the US would not be "doing business" with Chinese technology firm Huawei. Madden added: "The US-China trade spat has a technological element to it, and Beijing won't like the latest development, so the uncertainty is likely to spill over into next week."The UK released a cluster of economic data on Friday including the first estimate of second-quarter GDP and indices of production and services. The GDP estimate revealed the UK economy shrinking for the first time in near enough seven years. First estimate data from the Office for National Statistics showed UK gross domestic product for the second quarter fell 0.2% on the three months prior, weaker than the flat print forecast by economists and the 0.5% quarter-on-quarter growth reported in the first three months of 2019."This has raised the prospect that the UK economy may experience a technical recession (usually defined as at least two quarters of contraction in a row). However, in our view, we still see that as unlikely." said Lloyds Bank Economist Nikesh SawjaniMeanwhile, household consumption still had a growth of 0.5% quarter-on-quarter, down from 0.6% quarter-on-quarter. "This dynamic, along with some further increases in wage growth, should ensure that, outside of the volatility generated by Brexit-related effects, the UK returns to growth in the third quarter." Sawjani continued.Consensus seems to be that there will be growth in the third quarter, however Brexit volatility may prove that this growth may not last past this quarter.Despite this, think tank National Institute of Economic & Social Research cautioned that quarterly data is likely to remain "volatile" throughout the remainder of 2019 amid "little positive momentum" in the UK economy.Consequently, the NIESR warned there was a "significant risk" economic output could fall again in the third quarter meaning the economy would be in a "recession that began in April."The indices of UK production and services were also mixed. Manufacturing production in June fell at a worst-than-expected 0.2% on May. Economists had forecast a 0.1% monthly fall, following a 1.4% jump in May.On the other hand, industrial production in June came in slightly stronger than anticipated with a 0.1% decline on May. The consensus forecast was for a 0.2% fall, after a 1.2% rise in May. Amongst the stocks trading in London, FTSE 100-listed advertising agency WPP surged 7.2% after its second quarter results were "slightly ahead" of its expectations although interim profit suffered amid rising costs and one-off changes. For the six months ended June, pretax profit dived 44% to GBP478.2 million despite revenue rising 1.6% to GBP7.61 billion. Profit performance was hurt by a 28% surged in general & administrative costs to GBP552.8 million amid restructuring costs as well as the non-recurrence of a GBP114.0 million gain the year prior on the sale of an investment.Headline operating profit - which excludes sale gains and restructuring costs - fell 6.8% to GBP730 million."We remain positive on the long term recovery story for WPP and expect the shares to begin to re-rate further with the shares offering a 6.5% dividend yield while you wait, following the substantial organic revenue growth beat and the successful disposal of data analytics business Kantar generating GBP3.6 billion for debt pay down and return to shareholders," Liberum analyst Harry Read said. "Fundamentally, we do not believe the Agency model is broken; more that WPP has to readjust itself to the changes that have occurred and reduce its reliance on the traditional media business to drive profits," Read added.Fellow blue chip constituent, drugmaker AstraZeneca, was also performing well with share price up 1.7% after blockbuster cancer treatment Tagrisso significantly improved overall survival during its phase three Flaura trial in non-small cell lung cancer patients.The data was the secondary endpoint of the trial, after the primary endpoint was met in July. The fresh data showed Tagrisso delivered "statistically-significant and clinically-meaningful improvement" in overall survival compared to previous standard-of-care treatments.At the other end of the large caps, International Consolidated Airlines Group was down 2.4%. It has been a dismal week for IAG's British Airways, after a jet was forced to land as smoke poured into the cabin, an IT glitch caused the cancellation of more than 100 flights, and the BA pilots union threatened to strike over pay.In the mid caps, Hikma Pharmaceuticals closed 6.1% higher after profit over the first six months of 2019 soared 60% on the year prior to USD226 million as revenue rose 7.3% to USD1.05 billion following a strong performance from its generics and injectables units, resulting in a boost to full year expectations.A strong performance was also seen by bookmaker William Hill after it ended 6.5% higher after its half year pretax loss narrowed markedly to GBP63.5 million from GBP819.6 million the year prior, with revenue rising 1.1% to GBP811.7 million. The performance improvement was helped by the non-recurrence of a GBP883 million impairment the year prior related to the UK government move to reduce the maximum stake on fixed-odd betting terminals.Security outsourcer G4S closed 0.8% higher after announcing plans to separate its cash management division in the first half of 2020 following a business review. The company's first half revenue rose while profit suffered at the hands of one-off charges.For the six months ended June, pretax profit fell 21% to GBP108 million despite revenue rising 3.8% to GBP3.81 billion. Profit suffered on charges associated with disposals, onerous contracts, exchange rate movements and restructuring costs.Elsewhere in London, AIM-listed Rambler Metals surged 14.1% after the gold and copper producer reported output rose sharply in the second quarter of 2019 due to its mining process improvement programme.For the three months ended June, ore production rose 20% to 1,239 dry tonnes from 1,036 dry tonnes per day the year prior. Moreover, copper contained in ore produced in the second quarter was 17.2 dry tonnes per day versus 11.7 dry tonnes per day, up 47% year-on-year.At the other end of the AIM, Pennant International was down 29% as the training solutions provider predicted annual results to come in "materially" below market expectations, due to the timeline for the award of certain potential contracts moving into 2020.For 2019, Pennant forecasts report earnings before interest, taxes & amortization around GBP1.8 million. In 2018, the firm reported Ebita of GBP3.3 million.Pennant explained its costs reduction exercise in response to the delay to the award of the major programme is ongoing, although the benefits of this exercise will have limited impact on the second half.Brent oil was quoted at USD58.74 a barrel at the London equities close, higher than USD57.58 Thursday.Gold was quoted at USD1.500.67 an ounce at the London equities close, higher versus USD1,497.06 Thursday. On Wall Street, the Dow Jones was trading 0.9% lower, the S&P 500 down 1.2%, and the Nasdaq Composite was down 1.3%.Also in the US, the Producer Price Index advanced 0.2% in July. Final demand prices moved up 0.1% in both June and May.On a year-on-year basis, July's producer price index rose 1.7%, after the same year-on-year rise in June and a 1.8% increase in May.Price changes received by producers in July for domestic goods and construction grew by 0.4% and 0.6%, respectively, but declined by 0.1% for services.In China, mounting trade tensions with the US and weakening demand are still affecting economic indicators, with factory price inflation declining for the first time in three years.Data from the Chinese National Bureau of Statistics showed the producer price index dropped 0.3% on the year in July, compared to the zero print in June. In mainland Europe, in Paris the CAC 40 equities index ended up 1.3% lower and the DAX 30 in Frankfurt ended up 1.4% lower.The euro was quoted at USD1.2114, compared to USD1.1215 late Thursday.In the economic calendar on Monday, Japanese markets are closed amid national holiday celebrations for Mountain Day. Later in the week, UK average earnings data are due at 0930 BST on Tuesday alongside unemployment figures. US CPI data are also due on Tuesday at 1330 BST. On Wednesday, UK producer and consumer price index data are released at 0930 BST ahead of eurozone GDP at 1000 BST. On Thursday, US retail sales figures are printed at 1330 BST alongside jobless claims numbers. In UK corporate events on Monday, shipping services firm Clarkson delivers its half year report and a quarterly update is due from life sciences firm Syncona. London Close is available to subscribers as an email newsletter. Contact info@alliancenews.com