The FTSE 100 rose on Thursday after figures showed the UK economy grew faster than expected in the first months of this year.
London’s blue-chip index ended the day up 48.7 points to finish at 8,633.75, a 0.57% increase.
Earlier in the day, official data showed gross domestic product (GDP) increased by 0.7% between January and March, ahead of expectations.
Chancellor Rachel Reeves said the figures “show the strength and potential of the UK economy”.
But she acknowledged there was “more to do”, with the latest figures covering the period before US President Donald Trump’s “liberation day” tariff announcements.
Danni Hewson, an analyst at AJ Bell, said the economy looks “a whole lot more robust than many people had expected”.
“Of course, these figures are backwards-looking and the real impact of those changes won’t be clear for months to come. Indeed, the latest UK jobs data hints that fissures have already formed.
“There will have been plenty of manufacturers seeking to get ahead of Donald Trump’s tariffs by front-loading production and exports, and even with a trade deal between the US and UK there is still a huge amount of uncertainty about what trade will look like over the rest of the year.”
In Europe, Germany’s Dax rose 0.65% and France’s Cac 40 rose 0.21%.
On Wall Street, the S&P 500 was up 0.18% as UK markets were closing, while the Dow Jones was down 0.26%.
Sterling was up 0.18% against the US dollar at 1.3287, while it was 0.17% up against the euro at 1.1882.
In company news, supermarket sandwich maker Greencore agreed a £1.2 billion takeover deal for rival Bakkavor in a move that will create a food-to-go giant with around 30,500 staff.
Under the cash-and-shares deal, Greencore will pay £2 a share for Bakkavor, which it said is a 33% premium on Bakkavor’s closing share price on March 13.
The tie-up – structured as a reverse takeover – will form a combined food group with annual sales of about £4 billion which supplies many of the UK’s biggest supermarkets and retailers.
After an initial jump, Greencore shares rose 0.32%.
And ITV said it is bracing for a double-digit plunge in advertising revenues after last year was boosted by the Euros football tournament, but said it does not expect its production arm to be hit by US President Donald Trump’s proposed film tariffs.
The group said it was still assessing the “possibility of trade tariffs in the US”, but added that its ITV Studios business should not suffer a direct impact if Mr Trump went ahead with his threat to impose a 100% tariff on international films.
Shares fell 1.39% on Thursday.
The biggest risers on the FTSE 100 were Hikma Pharmaceuticals, up 143p to 2084p, Compass Group, up 97p to 2637p, Fresnillo, up 34.5p to 1016p, BAE Systems, up 54p to 1755p, and National Grid, up 30.5p to 1046p.
The biggest fallers on the FTSE 100 were 3i Group, down 177p to 4020p, Sage Group, down 49p to 1230.5p, BP, down 12.75p to 368.25p, Anglo American, down 57.5p to 2143p, and St James’s Place, down 25.5p to 1071p.
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