What’s going on here?
London’s FTSE 100 wrapped up 0.57% higher, fueled by solid UK GDP growth and impressive profits from National Grid, even as mixed corporate earnings added a dash of uncertainty.
What does this mean?
The UK economy grew 0.7% in Q1 2025, exceeding expectations of 0.6% and improving significantly from the previous quarter’s 0.1%. This growth reduces pressure on the Bank of England to cut interest rates, sparking market optimism. National Grid also played a key role, posting profits of 2.90 billion pounds, up from 2.29 billion, and surpassing EPS forecasts. Barclays responded by raising its valuation and price target. Meanwhile, Sage Group’s shares fell 3.83% despite strong first-half results, as its CEO warned about small and medium-sized enterprises’ responses to market instability.
Why should I care?
For markets: Economic surprises lift spirits.
The unexpected GDP growth is a positive signal for investors,…
