Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
London open: Stocks flat after UK GDP
(Sharecast News) - London stocks were flat in early trade on Thursday after data showed that the UK economy stagnated in February as strikes dented productivity. At 0825 BST, the FTSE 100 was steady at 7,828.07.
According to the Office for National Statistics, there was zero growth, down from 0.4% growth in January and versus expectations of a 0.1% increase. January's growth was revised up from 0.3%.
Falls in services and production were offset by growth in construction.
The services sector fell by 0.1% following 0.7% growth the month before. The ONS said the biggest contributor to the negative growth in services was education, which fell 1.7% due to teacher strikes. This followed growth of 2.5% in January.
Public administration - which was also hit by strikes - was the second largest contributor, falling by 1.1% in February.
Production output fell 0.2% in February following a 0.5% drop the month before, but construction output rose 2.4% following a 1.7% decline in January.
Paul Dales, chief UK economist at Capital Economics, said: "The stagnation in real GDP in February means the economy probably avoided recession in Q1. But it also increases the chances that the Bank of England will need to raise interest rates further to generate the economic weakness required to reduce inflation all the way to 2.0%."
Investors were also digesting the latest data out of China, which showed that exports unexpectedly spiked in March versus forecasts of a contraction, as the economy continued to recover from its zero-Covid policies and months of falling trade due to lockdowns.
Dollar-denominated exports grew 14.8% year-on-year, after falling 6.8% in January and February and against forecasts of a 7% contraction. Imports fell 1.4%, compared with expectations of a 5% decline.
In equity markets, housebuilders were the best performers after HSBC upgraded its stance on Barratt, Bellway, Berkeley, Crest Nicholson, Persimmon, Redrow and Taylor Wimpey.
Supermarket chain Tesco gained after saying it expects to post flat profits this year and announcing a £750m share buyback as annual earnings fell last year after it absorbed the cost on inflation instead of passing it on to customers. The company said group pre-tax profit halved to £1bn. Retail adjusted operating profit fell 6.3% to £2.49bn.
Tobacco company Imperial Brands lost ground despite saying it was on track to deliver earnings in line with expectations and low single-digit constant currency net revenue growth.
Imperial Leather maker PZ Cussons advanced after it backed its full-year expectations and posted a rise in third-quarter revenues as price increases underpinned margins.
Darktrace shares rose as the cyber security firm downgraded its full-year annual recurring revenue (ARR) guidance to the lower end of its previous range, but increased its adjusted EBITDA margin expectations.
Oxford Instruments rallied as it said trading for the full year was ahead of expectations.
Lloyds, Unite, TP Icap, ITV and Harbour Energy were all in the red as they traded without entitlement to the dividend.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.