FTSE edges higher as UK GDP beats forecasts and Schroders surges

FTSE rises modestly after UK GDP beats forecasts, with Schroders surging on upbeat profit outlook.

Bert O Bert O

London stocks opened slightly higher on Thursday after stronger-than-expected UK economic data offered a modest boost to sentiment.

The FTSE 100 (UKX), rose 0.1% in early trade, while the FTSE 250 added 0.3%.

UK gross domestic product grew 0.3% in November, beating expectations for a 0.1% rise, according to figures from the Office for National Statistics. The increase reversed October’s 0.1% contraction and was driven by a 0.3% rise in services output and a 1.1% jump in production.

Over the three months to November, GDP expanded by 0.1%, improving on the flat growth seen in the previous rolling period. Services output grew 0.2% over the same timeframe, making the largest contribution to overall activity. Production edged down 0.1%, weighed down by a sharp fall in motor vehicle manufacturing.

Construction remained a weak spot, with output down 1.3% in November and falling 1.1% over the three-month period, marking its weakest run since March 2023.

Goods exports rose £600 million, or 1.9%, supported by higher shipments to both EU and non-EU markets, while goods imports fell £600 million, down 1.1%. Trade with the US softened, with exports down £500 million and imports falling £900 million during the month.

On a three-month basis, the UK’s total trade deficit in goods and services widened by £2.7 billion to £6.1 billion, as a larger goods deficit outweighed a rise in the services surplus.

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Schroders (LON:SDR) led the FTSE 100, jumping more than 8% after saying it expects full-year adjusted operating profit to beat market expectations. The asset manager forecast at least £745 million in adjusted operating profit for 2025, up 24% from last year, helped by stronger fee income and tighter cost control.

Shares in 3i Group (LON:III) rose 4.7%, supported by the stronger GDP data.

In the FTSE 250, Ashmore (LON:ASHM) topped the index after reporting broad-based net inflows across fixed income and equities.

Assets under management rose to $52.5 billion at the end of December, reflecting both positive market performance and renewed investor interest in emerging markets.

FTSE 100 Gainers

Company Name Ticker Gain
Schroders SDR +7.04%
3i Group III +4.78%
LondonMetric LMP +2.56%
Marks & Spencer MKS +2.45%
Tesco TSCO +1.99%

FTSE 100 Fallers

Company Name Ticker Drop
Fresnillo FRES -3.13%
BP BP. -2.15%
WPP WPP -1.77%
JD Sports JD. -1.66%
Compass Group CPG -1.64%