UK equities moved higher at Thursday’s open after official figures showed the British economy expanded by 0.6% during the first quarter of the year, beating expectations of a slowdown amid political and geopolitical uncertainty.
The FTSE 100 rose 0.2% to 10,347.75 in early trading, while the more domestically focused FTSE 250 gained 0.6% to 22,597.96.
Investor sentiment was supported by the stronger-than-expected growth data, which suggested the UK economy remained resilient despite elevated energy prices, global market volatility and ongoing political tensions surrounding Prime Minister Keir Starmer.
The gains also reflected continued strength across financial, industrial and commodity-linked sectors as markets responded positively to signs of underlying economic momentum.
Insurance stocks were among the strongest performers in London trading, with Legal & General and Standard Life leading the FTSE 100 leaderboard after results from Aviva left investors underwhelmed, sending its shares 1.1% lower.
Banking stocks also remained firmly in demand, with Barclays, Lloyds Banking Group and NatWest Group all posting gains.
Elsewhere, British American Tobacco, Land Securities Group and Severn Trent traded higher as investors rotated into defensive and income-generating sectors.
National Grid climbed 1.2% after unveiling plans to invest at least £70 billion over the next five years as part of a major infrastructure expansion programme.
