FTSE 100 down 5 points at 9,160 UK growth data beats expectations Bitcoin treasury stocks in demand Aviva leads the gainers 11.51 am: Bitcoin treasury stocks in demand
UK-listed bitcoin treasury stocks were in demand on Thursday as the cryptocurrency traded just above $121,600, having retreated from its record $123,500.
The pullback came after a rally fuelled by institutional buying, spot ETF inflows, and public companies adding bitcoin to their balance sheets in the style of MicroStrategy.
Bitcoin is up 31% this year and 60% since April’s lows, with sentiment buoyed by expectations of US interest rate cuts in September and the Trump administration’s pro-crypto stance.
Last week, President Trump ordered the US Labor Department to explore allowing retirement plans to hold cryptocurrencies, a move that could broaden retail access.
Ethereum also edged near record highs this week, climbing above $4,700 as interest builds in its blockchain’s role in decentralised finance and stablecoins.
Ether has risen over 50% since the recent passage of the GENIUS Act, with corporate treasuries increasing allocations.
In London, treasury stocks The Smarter Web Company, London BTC Company Ltd and Vaultz Capital PLC were up between 1%-5% in morning trading.
10.50 am: UK GDP gets a surprise boost. But the shine fades on closer look
The UK economy pulled off another upside surprise in Q2, growing 0.3% versus Deutsche Bank’s forecast for a near stall. In fact, the bank notes the unrounded figure was 0.345% (almost an even stronger print) putting the UK on track to be the G7’s second-fastest grower this year, after topping the table in Q1.
Scratch beneath the surface, though, and the picture is less rosy. Deutsche Bank points out that government spending did the heavy lifting, with public consumption and investment up 2%, adding half a percentage point to GDP.
Inventory building, likely linked to President Trump’s trade war, added another 0.2 points, while net trade surprised positively as exports rose 1.6% and imports 1.4%.
The weak spots? Household spending barely grew at 0.1%, and business investment slumped nearly 4% – signs of caution amid global uncertainty.
Still, Deutsche Bank says June’s strong print gives Q3 a healthy carry-over, with GDP likely to rise 0.2-0.3%.
The bank now sees upside to its 1.2% annual growth forecast, but warns that to sustain outperformance, Chancellor Rachel Reeves must pair productivity measures with efforts to lift household and business confidence.
9.45: Viva Aviva after strong results
Leading the gainers was Aviva, with a 5% jump, after the insurer posted strong first-half results and said its newly acquired Direct Line business is integrating “at pace” following completion last month.
Adjusted operating profit climbed 22% to £1.07 billion, prompting a 10% rise in the interim dividend to 13.1p per share.
The FTSE 100 pared its already-modest losses to stand almost at parity
8.15 am: A nudge into the red
And we’re off… and into the red. Against the backdrop of surging US markets, the Footsie opened 20 points lower, defying pre-market predictions of a positive start to proceedings.
In economic news, growth slowed in the second quarter but still outpaced forecasts, according to the Office for National Statistics (ONS).
Gross domestic product rose 0.3% between April and June, down from 0.7% in the first quarter but above the 0.1% expected. Services provided the biggest lift, with construction output up 1.2%, aided by hot, dry weather.
More worryingly, the ONS revised April’s GDP figure, showing a smaller 0.1% contraction versus the 0.3% previously estimated, while June outperformed expectations.
Economists said the resilience came despite a drag from fading first-quarter boosts, including pre-tariff stockpiling by firms and a stamp duty rush.
Chancellor Rachel Reeves called the numbers “positive” but stressed more work was needed. Opposition parties criticised both the pace of growth and government policy.
Analysts warned momentum could weaken, citing global headwinds, April’s tax rises and uncertainty over further fiscal tightening.
7.13 am: Slow, but positive start predicted
The FTSE 100 looks set for another quiet day, in keeping with its progress over the trading week.
The blue-chip index is set to open 15 points higher at 9,180.23, largely ignoring the record performance of the S&P 500 after hours and the 400-point gain of the Dow Jones, both of which have been buoyed by the prospect of a rate cut by the Fed.
Asia’s main markets have been mixed, with Australia up and the Nikkei and Hang Seng in reverse gear.
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