The FTSE 100 slipped 0.1% to 8,789.51 at the open on Monday, as a solid UK GDP reading and fresh tariff relief from the US failed to spark much enthusiasm in London markets. The FTSE 250 shed 0.2%, while AIM ticked marginally higher.
UK economic growth came in exactly as forecast, up 0.7% in Q1, with decent contributions from services and industrial production. Year-on-year growth held steady at 1.3%. It’s a respectable rebound from the anaemic 0.1% growth in Q4, but it hasn’t done much to shift the mood.
Neither has Prime Minister Keir Starmer’s “historic” trade deal with the US, which cuts tariffs on UK car and aerospace exports. While welcome, the deal leaves steel producers still facing a 25% levy, a sore point given earlier expectations of a broader agreement. Talks are ongoing, but markets are clearly waiting to see more than headlines.
BP edged 0.6% lower despite locking in a long-term LNG supply deal with Italy’s A2A. WH Smith was battered at the open, down 7.8%, after it admitted its High Street sale would fetch less cash than hoped. Modella Capital is now only paying up to £40 million, down from the £52 million originally expected, after a soft trading patch and some buyer’s remorse.
In the FTSE 250, MS International fell 18% despite record profits. Strong results weren’t enough to offset what looks like a classic case of sell-the-news. Meanwhile, Cap-XX surged 9.5% after signing a global distribution deal with RS Group, whose own shares fell 1% on the news.
With no real surprises from GDP and limited excitement over trade progress, the FTSE’s sluggish start reflects a market still in search of a real catalyst.