The FTSE 100 (^FTSE) fell on Monday morning as data confirmed a slowdown in UK economic growth in the third quarter.
Data from the Office for National Statistics (ONS), released on Monday, confirmed that the UK’s gross domestic product (GDP) grew by 0.1% between July and September. While this was unrevised from the previous estimate, this was lower than growth in the second quarter.
The ONS also revised its estimate for growth in the three months to June to 0.2% from a previous estimate of 0.3%.
Lindsay James, investment strategist at Quilter, said: “Today’s GDP data all but confirms what has become very clear in the second half of the year – the UK economy is grinding to a halt and showing little sign of achieving what it did in the first half of the year.”
“Going forward, November’s budget measures will do nothing for growth after the OBR forecasted zero impact from the policies introduced at the despatch box,” she said. “Instead, the government is going to have to hope that previous measures taken to date begin to bear fruit, or that geopolitical challenges calm down enough that global trade can rebound.”
“Unfortunately, neither seems particularly encouraging right now and as such the first half of next year is likely to be more of the same, if not worse with the spectre of recession beginning to loom,” she added.
Other data due out this week, ahead of markets closing for Christmas, include the release of US third-quarter GDP data, which was delayed to the government shutdown. December’s US Conference Board consumer confidence reading is also due out on Tuesday.
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London’s premier index, the FTSE 100 (^FTSE), dipped 0.3% on Monday morning.
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Germany’s DAX (^GDAXI) gained 0.2%.
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In France, the CAC 40 (^FCHI) declined 0.2%.
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The pan-European STOXX 600 (^STOXX) hovered around the flatline.
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The pound rose 0.3% against the dollar (GBPUSD=X), trading at $1.3421 at the time of writing.
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Over in the US, S&P 500 futures (ES=F) were up 0.3% at the time of writing, contracts tied to the tech-focused Nasdaq (NQ=F) advanced 0.5% and Dow Jones futures (YM=F) edged 0.1% higher.
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