FTSE 100 Live: Index Drops to 10,470.77 as Middle East Tensions Hit Markets, UK GDP Up 0.1%

The FTSE 100 opened 45 points lower at 10,470.77 amid Iran’s threat to strike regional infrastructure, overshadowed by stronger-than-expected UK growth data. Meanwhile, Brent crude futures fell 0.52% to $84.51 a barrel, while US West Texas Intermediate (WTI) eased 0.13% to $79.50 a barrel.

Sterling was quoted at $1.3537 early Thursday, higher than $1.3486  at the London equities close on Wednesday. Against the euro, sterling rose to €1.1800 from €1.1791 a day earlier.

Gainers & Losers 

On the upside, Diploma rose 3.84% to £7,030, while Spirax Group advanced 1.73% to £6,765. DCC gained 1.03% to £6,370, and Weir Group gained 1.91% to £2,454. IMI added 1.32% to £2,912, while Smiths Group climbed 1.31% to £2,547.

On the downside, Games Workshop Group declined 0.59% to £20,380, while Experian slipped 4.28% to £2,593. AstraZeneca fell 0.62% to £12,488, and Lion Finance Group edged lower by 0.61% to £11,350. Rio Tinto dropped 1.02% to £6,797, while Coca-Cola Europacific Partners eased 0.83% to £7,745.

UK Economy Grew a Modest 0.1% in May 

Figures from the Office for National Statistics (ONS) have revealed the economy grew 0.1% in May, broadly in line with market expectations. 

The services sector, which contributes more than 80% of total economic output, increased 0.3% against a fall in other parts of the economy. 

Manufacturing fell 0.8% and production dipped 0.5%. “While all three main sectors grew over the three months (to May), the slight growth in GDP in May was driven by services alone, with production and construction both falling back,” Liz McKeown, director of economic statistics at the ONS, said. 

Experian’s Revenue Increased 10%

Experian said revenue rose 10% in the three months to 30 June. Revenue in the UK and Ireland increased 7%, backed by the acquisition of software platform provider KYC360 and recent contract wins, while underlying sales gained 5%. 

Chief executive Brian Cassin cited the firm’s “trusted data assets, scaled platforms and growing AI-enabled opportunities.” 

Experian shares fell by more than 7% after its full-year results in May as investors questioned whether AI could erode demand for some of its data products over time despite the company highlighting productivity gains from the technology. 

ABB to Acquire Rotork for £4 billion

Rotork agreed to a £4 billion acquisition after reaching an agreement with Swiss tech firm ABB. The Zurich-based electrical engineering company has recommended that its shareholders accept a deal that values the firm at £4.1 billion. 

It is made up of £503 in cash and a dividend of up to £3. The offer price is a 73% premium on Rotrok’s closing share price on 15 July. 

Under the terms of the deal, the group will operate as a separate division in ABB’s Automation business and is expected to add 3% to the group’s total revenue.

Also Read: US Stock Market Today: Dow, S&P 500 and NASDAQ Rise as Bank Earnings and Tech Stocks Advance

Frasers Witnesses Profit Jump

Frasers Group has seen its profit jump, driven by its recent takeover bids for rival retailers. The fashion group saw revenue jump by 8% to £3.3 billion in the year to the end of April, as pre-tax profit grew by 39% to £528 million. 

“Leveraging the strength of our UK Sport business and brand relationships, international expansion has become a powerful growth engine for the Group and a key pillar of our long-term strategy,” the firm said. 

Frasers stepped up its takeover efforts in recent weeks with a £1.7 billion bid for German fashion house Hugo Boss and a £166 million play for Australian shoe firm Accent. 

Global Market View

In US, the Dow Jones gained 0.3%, the S&P 500 rose 0.4% and the Nasdaq added 0.6%, with Apple climbing to a record high after reports it had secured approval to launch its generative AI features in China.

In Asia on Thursday, Tokyo's Nikkei 225 fell 2.79% to 66,835.54, while China’s Shanghai Composite dipped 1.85%. Hong Kong’s Hang Seng climbed 1.33%, and South Korea’s Kospi declined 6.37%. In India, both the Nifty 50 and the Sensex rose by 0.22% and 0.24%, respectively.