The FTSE 100 (^FTSE) fell on Monday morning as data confirmed a slowdown in UK economic growth in the third quarter.
Data from the Office for National Statistics (ONS), released on Monday, confirmed that the UK’s gross domestic product (GDP) grew by 0.1% between July and September. While this was unrevised from the previous estimate, this was lower than growth in the second quarter.
The ONS also revised its estimate for growth in the three months to June to 0.2% from a previous estimate of 0.3%.
Lindsay James, investment strategist at Quilter, said: “Today’s GDP data all but confirms what has become very clear in the second half of the year – the UK economy is grinding to a halt and showing little sign of achieving what it did in the first half of the year.”
“Going forward, November’s budget measures will do nothing for growth after the OBR forecasted zero impact from the policies introduced at the despatch box,” she said. “Instead, the government is going to have to hope that previous measures taken to date begin to bear fruit, or that geopolitical challenges calm down enough that global trade can rebound.”
Read more: Trending tickers: Oracle, Rocket Lab, Barrick and GSK
“Unfortunately, neither seems particularly encouraging right now and as such the first half of next year is likely to be more of the same, if not worse with the spectre of recession beginning to loom,” she added.
Other data due out this week, ahead of markets closing for Christmas, include the release of US third-quarter GDP data, which was delayed to the government shutdown. December’s US Conference Board consumer confidence reading is also due out on Tuesday.
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London’s premier index, the FTSE 100 (^FTSE), declined 0.5%.
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Germany’s DAX (^GDAXI) was muted at the time of writing.
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In France, the CAC 40 (^FCHI) declined 0.4%.
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The pan-European STOXX 600 (^STOXX) dipped 0.2%.
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The pound rose 0.4% against the dollar (GBPUSD=X), trading at $1.3433 at the time of writing.
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Over in the US, S&P 500 futures (ES=F) were up 0.3% at the time of writing, contracts tied to the tech-focused Nasdaq (NQ=F) advanced 0.5% and Dow Jones futures (YM=F) hovered around the flatline.
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Rank Group shares slip
Shares of FTSE 250-listed (^FTMC) Rank Group (RNK.L) were down 8.5% at the time of writing on Monday, after the gambling company said that its Spanish businesses had been the victims of payment fraud.
Rank said that the incident in its Enracha and Yo businesses totalled €7.1m and that it had reported the matter to the relevant law enforcement agencies.
Russ Mould, investment director at AJ Bell, said: “Better known for its bingo halls in the UK, it is a more obscure part of the business which has tripped Rank Group up.
“While the sums involved in the payment fraud at Rank’s Spanish operations are not immaterial the share price reaction likely also reflects some uncertainty about whether this will prove to be a more extensive issue for the company.”
In the US, stock futures rose on Monday morning at the start of the holiday-shortened week.
Contracts on the tech-heavy Nasdaq 100 (NQ=F) were up 0.5% at the time of writing, while those on the S&P 500 (ES=F) gained 0.3%. Meanwhile, Dow Jones Industrial Average (YM=F) edged 0.1% higher.
Yahoo Finance UK’s Pedro Goncalves writes:
Gold broke through the $4,400 an ounce level for the first time, hitting $4,417.53, as expectations of US interest rate cuts and strong demand for safe-haven assets fuelled a fresh rally.
Gold futures rose 1.3% to $4,442.70 an ounce, while spot gold climbed 1.6% to $4,412.23 at the time of writing.
Analysts attributed the move to growing expectations of further US rate cuts, alongside heightened geopolitical risk after US president Donald Trump and senior aides declined to rule out military conflict with Venezuela. The US has intensified its oil blockade against Venezuela, increasing pressure on the government of president Nicolás Maduro.
Tony Sycamore, market analyst at IG, said the gains were driven by “last week’s softer-than-expected US inflation and jobs reports, which reinforced expectations for two 25bp Fed rate cuts in 2026”.
He added that the rally was also supported by geopolitical tensions after Trump announced a “total and complete” blockade on sanctioned Venezuelan oil tankers and peace talks between Ukraine and Russia appeared to stall.
Read more on today’s commodity and currency moves here.
Yahoo Finance UK’s Pedro Goncalves writes:
Shares in GSK (GSK.L) slipped in London trading after the drugmaker became the latest large pharmaceutical group to sign up to the US government’s “most favoured nation” drug pricing regime in exchange for an exemption from tariffs.
The London-listed company said it had reached a voluntary agreement with the US government to cut the cost of prescription medicines and widen access to treatments for millions of Americans, as pressure intensifies on global drugmakers over pricing, tariffs and domestic investment.
GSK said the deal covers medicines used by more than 40 million US patients with respiratory conditions such as asthma and meets all four actions requested by Trump in a letter sent to drugmakers in July.
Under the agreement, the company will lower prices for certain medicines supplied through Medicaid and commit to launching new products in the US with a more “balanced” pricing approach.
GSK will also make most of its portfolio available through a direct purchasing platform, offering savings of up to 66%.
Read more on today’s trending tickers here.
In addition to a slowdown in UK economic growth, data released by the ONS on Monday showed that the households’ savings ratio fell to 9.5% in the third quarter, down from 10.2% for the previous three months.
The ONS said that the decrease was driven by a fall in the contribution of non-pension saving.
Hi! Vicky McKeever here — kicking off a shorter trading week as things wind down for Christmas.
Investors will be keeping an eye on the last pieces of financial data and hoping for some further market gains before the festive break.
Let’s get to it.
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