FTSE 100 Rebounds After Thursday's Losses

FTSE 100 has recovered modestly from Thursday's close amidst a slew of economic data indicators that laid bare the extent of economic recovery and demand in the world's key economy.

FTSE 100 is currently trading at 7050.79, up 0.38 percent over previous close of 7024.21.

At this level, the benchmark is 2.35 percent below the 52-week high of 7220.14.
A total of 32 scrips in the 101-scrip index are still trading lower than Thursday's levels.

Mining business Antofagasta is trading higher by more than 3 percent. Data services provider Experian and communication and internet services provider Rightmove have both gained more than two percent.

International Consolidated Airlines is down 3.80 percent.

Earlier in the day, data showed that trade deficit in July widened to GBP 3.1 billion, from GBP 2.5 billion in June in the backdrop of a 1.1 percent increase in imports and 0.1 percent decrease in exports.

Reports also showed that construction output in July was higher by 8.6 percent year-on-year versus 30 percent jump in June and expectations of a 10.9 percent rise. However, on a monthly basis, construction activity fell 1.6 percent.

Also, industrial production in July increased 3.80 percent year-on-year, above market forecasts of a 3 percent jump. On a monthly basis, it surged 1.2 percent, versus a 0.7 percent drop in June and above market expectation of 0.4 percent jump.

Most significant of all the data releases was the GDP number which recorded a growth of 3.6 percent in the three months to July. The reading, slightly less than market expectation of 3.8 percent was driven down mostly by the services sector. Considering July only, GDP expanded by just 0.1 percent, missing forecasts of 0.6 percent and remaining 2.1 percent below its pre-pandemic level.

The GBPUSD pair advanced to 1.3884 from 1.3838 on Thursday, despite mixed economic data.

Yields on U.K.'s ten-year bonds have declined slightly to 0.7360 percent versus previous close of 0.7380 percent but remained close to the recent high of 0.7450 reflective of the lingering anxiety on the outcome of the monetary policy review on September 23.

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