FTSE Edges Up on UK GDP Beat, Eyes US Inflation Data
London's FTSE 100 index is expected to open around 10 points higher on Friday, as investors react to better-than-expected UK GDP growth in July. The Office for National Statistics reported a 0.4% increase in the UK economy, beating expectations of no growth.
Services growth was 0.4%, while production and construction saw growth of 0.2% and 0.1%, respectively. ONS director of economic statistics Liz McKeown noted that ongoing strength in the services sector was partially offset by falls in both production and construction.
The market will also be watching US inflation data, due at 1330 BST, which is expected to print headline inflation of around 3.4% year-over-year and core inflation near 2.4%. Ipek Ozkardeskaya, senior analyst at Swissquote, warned that the Fed may face questions about its independence if it bypasses a rate hike without addressing rising energy prices.