UK GDP fails to lift markets

Any momentum that might have been gained from the UK GDP figures has been somewhat diluted by the poor economic data out of the EU.

The FTSE, having edged above August highs by adding over 400 points in the last couple of weeks, appears to have run out of steam. Weak German sentiment figures have added to a general sense of worry about the country, as the recent flow of data has been increasingly less confident. Although fears over the tentative ‘recovery’ of the EU have been bubbling under the surface, the bigger issues of US debt and worries over Syria have overshadowed them of late; perhaps now they have the chance to emerge.

Such news from Europe has managed to eclipse data released by the Office for National Statistics, which indicates that the UK economy is now roughly two thirds of the way to recovering ground lost in 2008. As many would have expected, the construction industry has been boosted by the UK government’s Help to Buy scheme, which has surely contributed towards its 2.5% climb.

The week closes on a relatively quiet day in terms of US corporate news; only Procter & Gamble and Moody’s stick out. However, Monday is back to being considerably busy.

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