Tuesday Morning Markets: FTSE Edges Higher as GDP Lands in Line, Sainsbury’s Lifts Mood

London’s blue-chip index has nudged into positive territory at the open, with the FTSE 100 up 0.4% and the broader FTSE 250 adding 0.1%, as investors digest a steady stream of domestic data and keep one eye on the Middle East. 

Continental bourses have so far outpaced the UK, with the DAX gaining 0.9%, the Stoxx 50 up 0.7% and the CAC 40 adding 0.3%.

The morning’s headline macro release came from the ONS, which confirmed UK Q1 2026 GDP grew 0.6% quarter-on-quarter, unrevised from the preliminary reading and in line with consensus. 

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Services led the expansion, rising 0.8%, though the details were less flattering, with real household disposable income per head falling to 0.8% in the quarter, and the saving ratio slipped 0.7 percentage points to 8.9%. 

The ONS also nudged its 2025 annual growth figure down marginally to 1.3% from 1.4%. 

Meanwhile, in the supermarket aisle… 

Sainsbury’s posted an upbeat Q1 trading statement covering the 16 weeks to 20 June 2026, pointing to continued volume growth and further market share gains on the back of competitive pricing. 

Annual guidance was maintained, and shares have risen more than 2%, making the grocer one of the session’s standout performers so far alongside Anglo American (+2.29%) and Glencore (+2.23%). 

Polar Capital Technology Trust leads the FTSE 100 risers, climbing 2.63% on renewed appetite for tech-focused names.

On the downside, housebuilders remained under pressure. Persimmon is down 3.51% and Barratt Redrow has dropped 3.17% amid persistent concerns over mortgage affordability, while Burberry has slid 2.15%.

In the FTSE 250, Ceres Power topped the risers, up 4.68%, while Saga plunged 9.15% after an AGM trading update that rattled investors.

Geopolitics remains a key watch… 

Both Washington and Tehran are sending delegations to Doha, but conflicting public statements.

US President Trump has said that negotiations are set for Tuesday in Qatar, while Iran says no meetings are scheduled.