Britain welcomed another Brexit victory the day before its 5th anniversary of leaving the EU as the country’s top index touched record highs. Meanwhile, the eurozone economy stagnated in the last quarter of 2024, Eurostat data revealed on Thursday.
Britain’s markets outperformed today as the blue-chip FTSE 100, the country’s benchmark index, reached record highs. The news was welcomed by investors following months of economic downturn and uncertainty.
The top index finished at 23.94 points, or 0.28%, higher to end the day at 8,557.81. Yet at 12:17pm, it was up a postitive 0.4% at 8,595.79 points.
On the other hand, two of the European Union’s largest economies, Germany and France, saw worse-than-expected contractions, exposing economic weakness across the bloc.
Data shows eurozone gross domestic product flatlining from the previous quarter which contradicts the 0.4% growth recorded in the third quarter. This benchmarks the weakest performance since 2023. Germany’s economy shrank by 0.2% which was worse than the predicted 0.1% decline as France’s GDP fell by 0.1%, also failing to achieve expectations.
The weaker-than-expected GDP figures can almost guarantee that the European Central Bank will slash interest rates during its policy meeting today.
“The eurozone economy is fragile, facing stagnant growth and rising recession risks. Q4 GDP data confirms near-zero growth, and PMI surveys indicate ongoing manufacturing contraction. In contrast, the US economy remains robust, driven by consumer spending, a tight labour market, and AI-driven investment,” said Boris Kovacevic, Global Macro Strategist at Convera.
Back in the UK, company values climbed, with Pennon and United Utilities stating that they were raising dividends for shareholders. Shares in Pennon were up 7.5% at 554p. United Utilities, which supplies water in the North West, finished 2% higher at 999.4p.
Lloyds banking group were also in the green as they announced plans to close the doors of 136 high street branches. The news prompted shares to finish 1.5% up at 62.52p on Wednesday.
WH Smith shares increased to their highest for two months after the business reported a 3% hike in group sales for the past 21 weeks. Shares moved up 6.9% as a result.