The FTSE 100 edged higher after UK economic growth exceeded expectations, while European markets remained mixed amid rising US inflation concerns. Oil prices declined and gold advanced as disruptions around the Strait of Hormuz kept investors focused on energy supplies and geopolitical risks.
British shares edged higher on Thursday after fresh economic data showed the UK economy expanded in August, defying expectations of a contraction. The modest gain came as investors weighed persistent inflation concerns in the US, a global technology sell-off and continued disruption to shipping through the Strait of Hormuz.
The FTSE 100 rose 0.06%, while France's CAC 40 added 0.05% and Germany's DAX slipped 0.40%. Sterling strengthened 0.44% to $1.3250.
Figures from the Office for National Statistics (ONS) showed that UK gross domestic product (GDP) increased by 0.1% in August, against forecasts for a 0.1% decline.
Growth over the three months to August reached 0.7%, above the 0.5% estimate, while annual economic growth stood at 2.1%. Computer programming was the largest contributor to the three-month expansion, according to ONS economic statistics director Liz McKeown. The data offers some support for the UK economy as policymakers prepare upcoming budget measures.
Developments in the Middle East continued to influence investor sentiment, with shipping activity through the Strait of Hormuz remaining severely disrupted.
Iranian parliamentary speaker Mohammad Bagher Ghalibaf said Tehran was not seeking an indefinite conflict or drawn-out negotiations, but would continue fighting until Washington accepted its demands. US President Donald Trump, meanwhile, said the war would end soon and claimed American forces had established control over the strategic waterway.
UK Maritime Trade Operations recorded 15 shipping-related incidents between October 6 and October 14, highlighting the risks facing commercial vessels. Data from Kpler also showed a sharp decline in oil shipments through Hormuz, with approximately 2.9 million barrels passing through on October 11, compared with nearly 20.8 million barrels on October 8.
US core consumer price inflation rose 0.3% in September, exceeding the 0.2% forecast. The stronger reading renewed concerns about the outlook for interest rates and added another source of uncertainty for global equities.
Brent crude: Fell 1.83% to $104.07 a barrel.
WTI crude: Declined 1.24% to $93.91 a barrel.
Gold futures: Rose 1.38% to $4,164.80 an ounce.
Spot gold: Advanced 0.93% to $4,143.26 an ounce.
TotalEnergies: Forecast a third-quarter refining margin of $33.20 per barrel, up from $8.40 a year earlier, amid disruptions to global energy supplies.
Jupiter Fund Management: Recorded £700 million in quarterly net inflows, while assets under management increased 51% to a record £75.9 billion.
Travis Perkins: Reported a 1.3% decline in third-quarter like-for-like sales as subdued construction activity weighed on demand.
British Land: Expected stronger first-half underlying earnings and rental income, supported by demand for London offices and retail parks.
Dunelm: Posted a 1.1% increase in first-quarter sales to £433 million and maintained its annual profit outlook, while anticipating lower first-half profits year on year.