Wall Street headed higher at the opening bell on Thursday as investors assessed the latest corporate earnings updates and looked ahead to Friday’s inflation reading.
Across the pond, the FTSE 100 (^FTSE) and European stocks were mixed after figures released this morning showed that the UK economy grew by 0.1% in the final quarter of 2025. Growth was slower than economists had expected, with the services sector stagnating during the October-December period.
The news follows a 0.1% increase in the previous quarter, and a growth of 0.1% in December on a monthly basis. November’s figure was also revised down to 0.2% from an earlier estimate of 0.3%.
The Office for National Statistics (ONS), which compiled the figures, said: “In output terms, growth in the latest quarter was driven by an increase of 1.2% in production, while the construction sector fell by 2.1% and the services sector showed no growth.”
Read more: UK economy posts sluggish 0.1% growth in final quarter of 2025
Gross domestic product (GDP) is estimated to have increased by 1.3% annually in 2025, up from growth of 1.1% in 2024. However, real GDP per head is estimated to have fallen by 0.1% in October-December, the second consecutive quarterly fall.
The Unite union has called for more investment in order to boost growth. Sharon Graham, general secretary, said: “Today’s figures are further proof that the UK economy will not get the growth we were promised until we reverse our historic levels of underinvestment.”
“The figures also show that real household disposable income fell in 2025. Families up and down the country are getting poorer in real terms. We need to stop the rot and start delivering for everyday people.”
Read more: Gold rally loses steam after strong US jobs data
The latest data also revealed that the UK outpaced the largest economies in Europe. It beat France, which reported 0.9% growth last year, Italy, where the economy grew 0.7%, and Germany, where gross domestic product rose by just 0.2% in 2025.
Elsewhere, attention is turning to Friday’s consumer price index (CPI) report, with hopes that a softer reading means price pressures are easing while economic growth remains intact.
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London’s benchmark index (^FTSE) ended 0.5% lower, tumbling from earlier in the session when it hit a fresh intraday record over 10,500 points.
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Germany’s DAX (^GDAXI) was flat on the day and the CAC (^FCHI) in Paris headed 0.5% into the green.
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The pan-European STOXX 600 (^STOXX) was down 0.4%.
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The Dow Jones Industrial Average (^DJI) was 0.9% down by the European close, after the blue-chip benchmark snapped a three-day win streak on Wednesday. Meanwhile, the S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) were 1.1% and 1.7% down respectively, as the indexes continue a lacklustre session that saw the major stock indexes end little changed.
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The pound was flat against the US dollar (GBPUSD=X) at 1.3624.
