FTSE 100 Edges Higher as UK GDP Beats Expectations
UK stocks opened slightly higher on Thursday, supported by stronger-than-expected economic data for February. Gains were driven by solid performance in the services and construction sectors, while investors remained focused on potential U.S.-Iran ceasefire developments. European markets traded mixed, with the British pound holding firm.
As of 07:05 GMT, the FTSE 100 rose 0.2%, while the GBP/USD pair gained 0.07% to 1.3577. Elsewhere in Europe, Germany’s DAX slipped 0.04%, while France’s CAC 40 added 0.1%.
UK Economy Shows Broad-Based Growth
The UK economy expanded in February, exceeding analyst expectations, according to data from the Office for National Statistics.
Growth surpassed the forecast of 0.1%, following an upwardly revised 0.1% increase in January. The expansion was broad-based:
- Services activity rose 0.5% month-on-month
- Industrial production increased 0.5%
- Construction output jumped 1.0%, despite poor weather conditions
This data reinforces the resilience of the UK economy in early 2026.
Tesco Outlook Widens Amid Geopolitical Uncertainty
Tesco PLC, the UK’s largest supermarket chain, expanded its profit outlook due to ongoing uncertainty linked to the Middle East conflict.
The company expects adjusted operating profit between £3.0 billion and £3.3 billion for the 2026/27 financial year. This compares to £3.152 billion reported in 2025/26, slightly above its previous guidance.
Ashmore Hit by Outflows as Conflict Weighs on Markets
Ashmore Group Plc reported a $1.8 billion decline in assets under management (AUM) during its fiscal third quarter.
Total AUM fell to $50.7 billion, down from $52.5 billion at the end of December. The drop was driven equally by:
- Net outflows of $0.9 billion
- Negative investment performance of $0.9 billion
The firm cited expanding geopolitical tensions as a key factor behind the weaker performance.
Rentokil Delivers Strong Growth Across Segments
Rentokil Initial PLC posted first-quarter organic growth of 3.4%, beating analyst expectations.
Total revenue reached $1.677 billion, up 4.3% year-on-year. Key highlights include:
- Pest control services up 3.7%
- Hygiene services up 2.1%
- North America growth of 3.9%
- Business services surging 12.7%
U.S. pest control growth improved to 2.8%, despite weather-related disruptions earlier in the quarter.
Hays Reports Slower Decline in Recruitment Activity
Hays Plc reported an 8% decline in like-for-like net fees in the third quarter, an improvement from the 10% drop recorded in the previous quarter.
March performance remained consistent with broader trends, with international markets contributing to a modest upside versus expectations.
Schroders Sees Outflows Amid Market Volatility
Schroders PLC recorded £1.1 billion in client outflows during the first quarter of 2026, as geopolitical uncertainty weighed on investor sentiment.
Assets under management declined to £814.4 billion, down from £823.7 billion at the end of 2025.
