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The FTSE 100 index held steady near record highs on Friday, even as new data showed the economy stagnated in July. Broadly, the sentiment in the market was supported by hope for a US rate cut, and mining stocks carried a lot of weight on Friday.
The FTSE 100 opened 25 points higher at 9,323.03, building on Wall Street’s overnight gains where the Dow Jones, S&P 500, and Nasdaq all closed at record highs. The index remains close to its all-time closing high of 9,321.40 set on August 22, with intraday levels just shy of 9,357.
Fresnillo rose £60, or 2.73%, to £2,256 as gold and silver prices strengthened. Centrica gained £3.85, or 2.45%, to £160.85, supported by energy market stability. Beazley advanced £18.5, or 2.34%, to £810.5 on firm specialty insurance demand.
Glencore climbed £6.55, or 2.19%, to £305.15 amid optimism for industrial metals.
On the downside, BP and Shell slipped as Brent crude dipped below $66 a barrel, dragging energy stocks lower. Defensive names also weakened, with Tesco and AstraZeneca retreating modestly.
The mid-cap FTSE 250 index moved up by 0.2% to 21,734, showing cautious optimism despite domestic economic challenges.
According to data from the Office for National Statistics (ONS), UK exports to the United States increased by £800 million in July to £4.7 billion, the highest level since March, but well short of the £6.1 billion peak just before US tariffs were imposed and ongoing trade pressures.
ONS data confirmed that the UK economy recorded no growth in July, matching forecasts after a 0.4% expansion in June. Quarterly, GDP slowed to 0.2% growth, while year-on-year expansion was 1.4%, slightly weaker than expected.
Weakness in industrial output, which fell 0.9%, and manufacturing, down 1.3%, offset gains in construction, which rose 2.4% thanks to housing and infrastructure projects. Services remained the largest contributor, supported by transport and storage activity, though retail performance lagged.
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A Treasury spokesperson admitted the economy “feels stuck,” blaming years of underinvestment, though they highlighted progress such as five interest rate cuts since the election and faster wage growth compared to previous governments.
Capital Economics suggested the soft July reading is unlikely to prompt immediate Bank of England action, with rates expected to remain at 4% through 2025 before easing to 3% next year. Deutsche Bank projects GDP growth of 1.2% this year, with only a slight improvement in 2026.
