The FTSE 100 notched a record closing high today, edging up 0.1% to 9,177.24, as investors balanced stronger-than-expected UK growth data against a surprise rise in US producer price inflation.
The FTSE 250 slipped 0.2% to 21,801.67, while the AIM All-Share gained 0.3% to close at 759.71.
Across Europe, Paris’s Cac 40 climbed 0.7% and Frankfurt’s Dax added 0.8%.
Figures from the Office for National Statistics showed UK GDP grew 0.3% in the second quarter, slowing from a 0.7% rise in the first. This comfortably beat market expectations, with analysts surveyed by FXStreet forecasting just 0.1% growth for the three months to June.
European Stocks Hit Two-Month Highs on Defence Sector Rally
European stocks climbed to their highest level in over two months on Thursday, driven by gains in aerospace, defence, and financial shares as investors digested a wave of corporate earnings.
The pan-European Stoxx 600 index, which includes several major UK-listed companies, rose 0.6%, with industrials among the top-performing sectors. Aerospace and defence firms led the charge, buoyed by expectations of increased defence spending, though questions remain over the timing and allocation of contracts to European companies, noted Richard Flax, chief investment officer at Moneyfarm.
Stronger-than-expected corporate results further lifted sentiment. Insurers gained 0.9%, briefly touching levels near last week’s record highs. In the UK, Admiral surged 6.6% to an all-time high following robust first-half profits, while Aviva advanced 2.6% to its strongest level since December 2007 after raising its interim dividend and reporting higher half-year operating profit.
