FTSE 100 opens higher, UK GDP rose 0.2% in July

FTSE 100 opens higher, up 25 points
UK GDP rose 0.2% in July, slightly weaker than expected
UK trade deficit narrows in July
The FTSE 100 opened higher on Monday following gains in the US on Friday and despite slightly weaker than expected UK GDP figures.

At 8.10am the lead index was trading 26 points higher at 7,376 with the broader FTSE 250 up 55 points at 19,243.

GDP rose 0.2% in July, slightly below market expectations for a 0.3% increase, while in the three months to July, growth was flat.

Serco Group (LON:SRP) PLC announced the retirement of chief executive office Rupert Soames today.

He will retire in September 2023 and step down both from the board at the end of this December 2022, to be replaced by Mark Irwin, who is currently the CEO of Serco’s UK & Europe Division.

Residential property business Grainger PLC said that rents had risen 4.5% in the year to date reflecting strong rental market conditions in the second half of the trading year.

Grainger, highlighted a record occupancy rate of 98.2%, and said the rental market was buoyant.

7.40am: UK trade deficit narrows in July

Trade figures out today show the total trade deficit narrowed by £2.0bn to £20.8bn in the three months to July 2022.

The figures excluding precious metals and remove the impact of inflation.

For July, total imports of goods, excluding precious metals, decreased by £0.5bn (0.9%) total exports of goods, excluding precious metals, increased by £2.1bn (6.7%).

There was an increase in exports to EU countries in July 2022 primarily driven by higher exports of fuels, and machinery and transport equipment, which increased by £0.8bn and £0.4bn respectively.

7.15am: UK GDP slightly weaker than expected

Gross domestic product (GDP) grew by 0.2% in July 2022 following a fall of 0.6% in June 2022 according to the Office for National Statistics while for the three months to July GDP was flat compared with the previous three months.

Both figures were slightly weaker than market expectations of +0.3% and +0.1% respectively.

Services grew by 0.4% in July 2022, after a fall of 0.5% in June 2022, and was the main driver to the rise in GDP; information and communication grew by 1.5% and was the largest contributor to the services growth in July.

Production fell by 0.3% after a fall of 0.9% in June 2022; this was mainly because of a fall of 3.4% in electricity, gas, steam, and air conditioning supply.

Construction also fell in July 2022 by 0.8%, after a fall of 1.4% in June 2022; the decrease in monthly construction output in July 2022 came solely from repair and maintenance, which fell 2.6%.

Output in consumer-facing services grew by 0.6% in July 2022, following flat growth in June 2022; consumer-facing services remained 4.3% below their pre-coronavirus (COVID-19) levels (February 2022) in July 2022.

6.55am: FTSE 100 seen opening higher

FTSE 100 expected to open slightly higher on Monday following gains in the US on Friday and strong gains in Asia overnight.

Spread betting companies are calling the lead index up by around 20 points.

US stocks put an end to a three-week losing streak on Friday, as investors signaled the ECB hike and Powell’s warning about more rate increases is behind them.

At the close, the S&P 500 had gained 1.5% at 4,067; the Dow ended 1.2% higher at 32,152 and the Nasdaq ran another. 2.1% to close at 12,112.

In the UK. GDP figures are due.