FTSE 100 bounces back as UK flirts with recession
The FTSE and European stocks were mixed this Friday as revised official data showed the UK could be falling into a recession.
The FTSE 100 (^FTSE) bounced back and rose 0.1% to 7,705 points during midday trading, while in Paris the CAC 40 (^FCHI) was flat at 7,570 points. In Germany, the DAX (^GDAXI) was muted at 16,680.
Europe’s Stoxx 600 (^STOXX) was also flat.
Across the pond, US stocks climbed on Thursday to rebound after the major indices suffered their worst daily sell-off in months.
Read more: Recession looms large as UK economy shrinks in third quarter
The Dow Jones (^DJI) climbed 0.1% to 37,404 points. The S&P 500 (^GSPC) rose 1% to 4,764 points and the tech-heavy NASDAQ (^IXIC) gained 1.2% to 14,963 points.
The down day marked the S&P's worst single-day performance since October, while it also snapped a nine-day winning streak for the Nasdaq and Dow Jones.
S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were in the red ahead of the opening bell in Wall Street.
Thursday brought a wave of economic data — the final reading of gross domestic product (GDP) for the third quarter showed the US economy grew 4.9% on annualised basis in the period, below the consensus estimate for 5.2% growth.
Meanwhile, the latest data on initial jobless claims showed 205,000 people filed for unemployment insurance in the week ending 16 December. Economists had estimated 215,000 claims were filed.
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In Asia, Tokyo’s Nikkei 225 (^N225) edged 0.1% higher to 33,169 points as Japan’s core inflation rate fell to 2.5% in November from 2.9% a month earlier, The Hang Seng (^HSI) in Hong Kong lost 1.7% to 16,334. The Shanghai Composite (000001.SS) slipped 0.1% and closed at 2,914 points.
The pound (GBPUSD=X) was slightly higher against the dollar, with sterling trading at $1.2695. Sterling (GBPEUR=X) was also stronger against the euro, trading at €1.1534.
Meanwhile, Brent crude (BZ=F) was higher, trading at $79 per barrel amid jitters over global trade disruptions due to tensions in the Middle East.
Watch: Oil is indicator of a recession: Strategist
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