The FTSE 100 rose 0.5% on Friday’s opening, despite the new figures showing GDP to rise at a slower rate than expected.
Instead, investors focused on the idea of more stimulus in the US after Donald Trump initially cancelled talks on Tuesday.
The blue-chip index rose to 6,009 points, whilst the FTSE 250 increased by 0.3%.
The economy grew by 2.1% over August, lower than the 4% predicted by analysts. Jonathan Athow, the ONS deputy national statistician for economic statistics, said: “The economy continued to recover in August but by less than in recent months.
“There was strong growth in restaurants and accommodation due to the easing of lockdown rules, the Eat Out to Help Out scheme and people choosing summer ‘staycations’. However, many other parts of the service sector recorded muted growth.”
Following the new GDP figures, Rishi Sunak is expected to announce a new phase of the job support programme.
Britain’s GDP through August was 9.2% lower than it was during pre-pandemic levels in March.
Commenting on this morning’s market, Connor Campbell from Spreadex, said:
“Taking their lead from the Dow Jones last night, the European indices rose at the start of Thursday – but with the FTSE looking in from the outside.
“By the end of Wednesday night, the Dow had reclaimed all of Tuesday’s losses and then some, surging 530 points to cross 28,300 for the first time in a month. This as investors banked on Trump signing off on some kind of stimulus if he wins in November, with Joe Biden likely to do the same if he comes out of the election victorious.”
