Thursday Morning Markets: FTSE Edges Up as UK Economy Grows, Burberry Jumps

The FTSE 100 was up 0.2% and the FTSE 250 up 0.1% early on Thursday. Office for National Statistics (ONS) figures showed UK GDP growing faster than forecasters had pencilled in.

The ONS said the economy grew 0.7% in the third quarter, up from 0.5% in the second, the fastest pace in more than two years.

Forecasters, including the Office for Budget Responsibility, had expected 0.2-0.3% weeks ago. Services grew 0.9%, while construction fell 0.7%. ONS chief economist Grant Fitzner pointed to “private sector wages easing and inflation picking up”.

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Burberry leads the FTSE 100, up 8.01% to 1,181p after half-year results showed adjusted operating profit of £62m, against £19m a year earlier. Burberry also reported a fifth straight quarter of comparable sales growth.

3i is trading 3.63% higher after results and a new buyback of up to £750m.

Rolls-Royce has gained 2.73% after announcing a £1.5bn share buyback and reaffirming full-year guidance. Barratt Redrow rose 3.38%.

Miners were among the fallers, while spot gold slid 1.6% to $3,925. Endeavour Mining dropped 8.82% and Fresnillo 3.10%.

ICG was another name on the back foot, falling 2.97%.

In the FTSE 250, B&M jumped 16.77% after half-year results. Chief executive Tjeerd Jegen said “Back to B&M Basics is starting to deliver.”

Michael Page rose 5.61% and Hays 5.38%.

Dr. Martens fell 15.30% after first-half revenue dropped 9.2% at constant exchange rates, which strips out currency moves.

WH Smith lost 7.49% after full-year results, which showed like-for-like sales flat in the first ten weeks of the new year. Volex fell 6.88% after results. Lancashire dropped 7.67%.

Wizz Air reported half-year net profit of €108.1m, down from €323.5m, on revenue up 13.8%. BAE Systems raised its free cash flow guidance to about £3bn from over £2bn, leaving sales and earnings guidance unchanged.

Meanwhile, oil is little changed so far today, with Brent at $92.78 (January contract) and WTI down 0.2% at $86.40 (December contract).