London open: FTSE gains as oil prices fall, GDP revised up

30th Sep 2026 09:00

(Sharecast News) - London stocks rose in early trade on Wednesday as data showed the UK economy grew faster than expected in the second quarter, while oil prices fell and investors eyed a key US inflation reading.

At 0850 BST, the FTSE 100 was up 0.7% at 10,710.50, while Brent crude was down 0.4% at $102.22 a barrel and West Texas Intermediate was 0.3% lower at $89.08.

Susannah Streeter, chief investment strategist at Wealth Club, said: ''Falling oil prices have sent ripples of relief through financial markets, with hopes rising that inflationary pressures may ease off a little. The FTSE 100 has made a big stride forward in early trade, with European indices also moving higher, following gains in Asia."

Figures released earlier by the Office for National Statistics showed the economy grew 0.5% in April to June, up from a previous estimate of 0.4% and following 0.6% growth in the first quarter. Economists were expecting growth to be unrevised.

The services sector grew by 0.6%, the construction sector by 0.8% and the production sector by 0.1%.

ONS director of economic statistics Liz McKeown said: "Today's figures include our annual improvements to the measurement of the economy, incorporating new information that provides a better picture of activity across the UK's service sector, alongside the usual inclusion of updated and improved data sources.

"Growth for 2025 as a whole was a little lower than previously estimated, with the profile of growth across the quarters also revised.

"However, stronger services growth in the latest quarter means the economy is now slightly larger than previously estimated."

Looking to the rest of the day, attention will turn to the US PCE reading for August at 1330 BST. Danske Bank said headline inflation likely rose from July (0.2% m/m and 3.7% y/y) driven by higher energy prices in August.

"The US Bureau of Economic Analysis will update its methodology for some PCE subcomponents which should provide relief to core inflation. However, given the strong underlying economy, core PCE could still tick up. We will also receive the final revision of Q2 GDP," it said.

In equity markets, Greggs shot higher as it unveiled plans to overhaul its manufacturing operations, with the potential loss of more than 700 jobs.

The bakery chain said that following a review of where future manufacturing activity should be located, four sites had been flagged for possible closure. It will now enter a consultation period, but confirmed 740 roles were likely to be made redundant over the next two-and-a-half years.

The announcement coincided with an update on third-quarter trading. Total sales rose 7.7% in the 13 weeks to 26 September, or by 3.4% on a like-for-like basis, which Greggs attributed to menu innovation alongside more settled weather. Coupled with "strong" cost control, Greggs added that it now expected a "modestly improved" outcome for 2026.

Susannah Streeter said "shareholders have welcomed the baker's recipe for trimming fat from its manufacturing operations but at the same time keeping plans for opening new stores intact".

Private hospitals chain Spire Healthcare - about to be bought by a group of investment firms in a deal worth £1bn - was in focus as it posted lower first-half operating profit of £38.4m, down from £63m a year earlier.

Saga surged as the specialist in products for the over-50s said its first-half performance was ahead of expectations, with all of its core businesses growing, and that it expects to achieve its medium-term targets earlier than planned.

Market Movers

FTSE 100 (UKX) 10,710.50 0.69%

FTSE 250 (MCX) 24,547.28 0.71%

techMARK (TASX) 6,207.44 0.16%

FTSE 100 - Risers

Antofagasta (ANTO) 3,753.00p 3.01%

SSE (SSE) 2,508.00p 2.67%

National Grid (NG.) 1,155.50p 2.49%

Severn Trent (SVT) 3,150.00p 2.48%

JD Sports Fashion (JD.) 81.84p 2.47%

United Utilities Group (UU.) 1,444.00p 2.42%

Rio Tinto (RIO) 7,207.00p 2.22%

Marks & Spencer Group (MKS) 389.20p 2.18%

InterContinental Hotels Group (IHG) 165.00p 2.04%

Kingfisher (KGF) 334.50p 1.79%

FTSE 100 - Fallers

Ithaca Energy (ITH) 269.60p -1.67%

BP (BP.) 542.10p -1.58%

Shell (SHEL) 3,560.00p -0.93%

The Sage Group (SGE) 963.00p -0.72%

BT Group (BT.A) 195.45p -0.38%

RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 98.64p 0.00%

Intertek Group (ITRK) 5,880.00p 0.00%

Schroders (SDR) 589.00p 0.00%

Beazley (BEZ) 1,308.50p 0.04%

Aviva (AV.) 695.20p 0.09%

FTSE 250 - Risers

Oxford Nanopore Technologies (ONT) 212.60p 6.42%

Greggs (GRG) 1,991.00p 6.03%

Pennon Group (PNN) 461.80p 4.12%

International Workplace Group (IWG) 182.40p 3.90%

Jupiter Fund Management (JUP) 172.20p 3.74%

Seraphim Space Investment Trust (SSIT) 193.60p 3.42%

W.A.G Payment Solutions (EWG) 98.00p 3.05%

RTW Biotech Opportunities Ltd (RTW) 2.40p 3.00%

B&M European Value Retail (BME) 257.20p 2.78%

TP Icap Group (TCAP) 339.60p 2.78%

FTSE 250 - Fallers

Auction Technology Group (ATG) 430.00p -2.18%

Premier Foods (PFD) 191.00p -2.05%

Vietnam Enterprise Investments (DI) (VEIL) 720.00p -1.64%

Schroder Asian Total Return Investment Company (ATR) 719.00p -1.37%

WPP (WPP) 377.20p -1.30%

Barr (A.G.) (BAG) 568.00p -1.04%

Playtech (PTEC) 373.00p -1.01%

North Atlantic Smaller Companies Inv Trust (NAS) 425.98p -0.93%

Harbour Energy (HBR) 258.00p -0.92%

NCC Group (NCC) 143.00p -0.83%