London stocks had pared earlier losses to trade flat by midday on Wednesday as investors digested weaker-than-expected UK growth figures.
The FTSE 100 was steady at 7,297.76.
Data released earlier by the Office for National Statistics showed the economy grew less than initially thought in the third quarter, even before the Omicron Covid variant hit. GDP rose 1.1%, coming in weaker than the initial estimate for growth of 1.3%. It was a marked slowdown from the 5.4% growth seen in the in the second quarter, when restrictions were lifted.
Still, significant upward revisions to 2020 data meant that GDP was 1.5% below where it was at the end of 2019, revised up from a previous estimate of 2.1% below.
ONS Director of Economic Statistics Darren Morgan said: “Our revised figures show UK GDP recovered a little slower in the third quarter, with much weaker performances from health and hairdressers across the quarter, and the energy sector contracting more in September, than we previously estimated.
“However, stronger data for 2020 means the economy was closer to pre-pandemic levels in the third quarter.”
Russ Mould, investment director at AJ Bell, said: “Investors are preparing to go into hibernation for Christmas and will hope by this time next week we’ll know a lot more about the trajectory of Omicron and the likelihood of further restrictions to contain it, and just how long those curbs will be in place.
“For now the markets, bar the odd day, have just about managed to hold on to the idea that, to employ central bankers’ favourite word of 2021, Omicron’s impact will be transitory.
“If that changes, we could see a more pronounced sell-off in global stocks as growth expectations for 2022 are rapidly reset.
“The disappointing figures on the UK economy were before the Omicron wave hit, so there will be some concern that they represent the calm before the storm and the situation will be revealed to be significantly worse when the fourth quarter numbers are printed.”
In equity markets, miners were among the worst performers, with Rio Tinto, BHP and Anglo American all weaker.
Croda International was also down after it agreed to sell the majority of its performance technologies and industrial chemicals business for €915m (£778m).
On the upside, Syncona surged to the top of the FTSE 250 after saying it had sold its portfolio company Gyroscope Therapeutics Holdings to Novartis for up to $1.5bn (£1.1bn) on a cash and debt free basis.
Just Eat Takeaway rallied after striking a deal with One Stop – a convenience store chain owned by Tesco – to handle orders and deliveries on its platform.
Market Movers
FTSE 100 (UKX) 7,297.76 0.00%
FTSE 250 (MCX) 22,965.11 0.63%
techMARK (TASX) 4,505.68 0.48%
FTSE 100 – Risers
Smith & Nephew (SN.) 1,277.50p 2.24%
Dechra Pharmaceuticals (DPH) 5,060.00p 1.85%
Entain (ENT) 1,659.50p 1.69%
Melrose Industries (MRO) 154.35p 1.61%
Burberry Group (BRBY) 1,776.50p 1.60%
BT Group (BT.A) 169.60p 1.59%
Rolls-Royce Holdings (RR.) 116.24p 1.47%
Intermediate Capital Group (ICP) 2,147.00p 1.47%
M&G (MNG) 194.50p 1.30%
Antofagasta (ANTO) 1,313.50p 1.19%
FTSE 100 – Fallers
Croda International (CRDA) 9,814.00p -1.66%
Fresnillo (FRES) 868.60p -1.61%
Pearson (PSON) 590.00p -1.50%
Rio Tinto (RIO) 4,831.50p -1.46%
National Grid (NG.) 1,069.80p -1.38%
United Utilities Group (UU.) 1,090.00p -1.22%
Rentokil Initial (RTO) 578.60p -1.06%
BHP Group (BHP) 2,175.00p -0.93%
Unilever (ULVR) 3,904.50p -0.91%
B&M European Value Retail S.A. (DI) (BME) 613.00p -0.81%
FTSE 250 – Risers
Syncona Limited NPV (SYNC) 215.50p 7.75%
Provident Financial (PFG) 345.20p 5.12%
Micro Focus International (MCRO) 395.50p 3.78%
Darktrace (DARK) 423.00p 3.52%
Capita (CPI) 36.98p 3.12%
Petershill Partners (PHLL) 267.00p 3.09%
Savills (SVS) 1,416.00p 2.98%
WH Smith (SMWH) 1,436.00p 2.94%
Future (FUTR) 3,674.00p 2.80%
National Express Group (NEX) 243.60p 2.78%
FTSE 250 – Fallers
Hochschild Mining (HOC) 128.90p -1.75%
Bridgepoint Group (Reg S) (BPT) 467.50p -1.48%
Aston Martin Lagonda Global Holdings (AML) 1,273.50p -1.36%
Playtech (PTEC) 722.00p -1.23%
Johnson Matthey (JMAT) 1,964.00p -0.98%
Mitie Group (MTO) 61.40p -0.97%
Safestore Holdings (SAFE) 1,351.00p -0.95%
Contour Global (GLO) 190.20p -0.83%
FirstGroup (FGP) 100.50p -0.79%
Premier Foods (PFD) 106.00p -0.75%
