FTSE 100 climbs on stronger UK GDP, on track for worst month since March

By Reuters News

Sept 30 (Reuters) - London's FTSE 100 rose on Wednesday as investors assessed stronger-than-expected GDP data, and was on course for a monthly loss as persistent inflation concerns and rising bond yields dampened sentiment.

The blue-chip FTSE 100 index .FTSE rose 0.26% to 10,664.93 points by 1018 GMT, headed for its biggest monthly loss since March and its seventh consecutive quarterly gain.

The midcap FTSE 250 .FTMC climbed 0.74% but was set to dip for the month.

  • Britain's economy grew more quickly than previously thought in the second quarter, with output expanding by 0.5% in the April-to-June period, the Office for National Statistics said

  • The data showed unexpected resilience in the face of geopolitical upheaval and a global bond market crisis

  • The positive data helped cyclical stocks, with banks .FTNMX301010 being the biggest boost to the index

  • The utilities sector .FTUB6510 rose 2.7% a day after UK PM Andy Burnham made a series of policy announcements for the sector

  • Electricity firms National Grid NG.L and SSE SSE.L added about 3% each, while water companies United Utilities UU.L and Severn Trent SVT.L climbed about 2.3% each

  • Energy stocks .FTNMX601010 dropped around 1%, limiting gains

  • Bank of England policymaker Alan Taylor said it was unclear that it would be practical for the BoE to do a single rate hike to tame inflation without fuelling unwarranted market speculation of further increases

  • Traders are pricing at least one 25-basis-point rate hike by the BoE this year, according to data compiled by LSEG

  • Greggs GRG.L advanced 7.4% after the fast-food chain raised its annual profit outlook as underlying sales growth accelerated in the third quarter

  • Across the Atlantic, US personal consumption expenditures figures will be under scrutiny as investors look for clues to the Federal Reserve's monetary policy path

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