London’s FTSE 100 finished Thursday 1.08% higher, and government figures showed Britain’s economy expanded in August; a separate U.S. Treasury series later recorded lower daily yields.
The benchmark added 115.49 points to 10,840.35, according to LSEG data. France’s CAC 40 rose 0.78% to 7,934.70, and Germany’s DAX gained 0.33% to 25,382.62. The close topped 10,802.82, the level in an earlier FTSE morning update. Reuters described it as the index’s highest finish since Aug. 26.
The Office for National Statistics (ONS) estimated that gross domestic product grew 0.1% in August, following 0.4% growth in July and a revised 0.4% in June. Output increased 0.7% over the three months through August compared with the preceding three-month period. A Reuters survey had put the expected August change at a 0.1% contraction.
Production rose 0.8% in August, including a 1.2% increase in manufacturing. Services output was unchanged and construction fell 0.2%. Over the three months through August, services grew 0.9%, while production declined 0.2% and construction fell 1.0%.
Separately, the U.S. Treasury’s daily par yield series showed the 10-year rate at 5.10% on Oct. 15, down from 5.19% a day earlier. The 30-year rate was 5.48%, compared with 5.57%. The Treasury bases the figures on market quotations taken at or near 3:30 p.m. ET, several hours after the London close.
The Bureau of Labor Statistics (BLS) reported Wednesday that consumer prices rose 0.6% in September from August and 3.7% over the 12 months through September.
Reuters linked support for London shares to investors shifting toward defensive sectors during a global pullback in AI-related stocks. Reuters reported that Finance Minister John Healey reiterated the government’s fiscal-discipline commitment ahead of the budget.
Kathleen Brooks, U.K. research director at XTB, said, “When the AI trade sells off, the UK is the harbour in the storm.” XTB linked pressure on AI-related shares to concerns about debt-financed investment and the returns on that spending.
The ONS has scheduled its next monthly GDP estimate for Nov. 12. The Federal Reserve’s next meeting is listed for Oct. 27-28.
