12th Dec 2025 11:55
(Alliance News) - Stock prices in London were higher midday on Friday, after the UK's Office for National Statistics announced that the economy shrank in October.
Gross domestic product is estimated to have fallen by 0.1% in October, the same as in September, and missing the FXStreet-cited market consensus for a 0.1% rise, the ONS reported. The ONS also reported that the UK goods and services trade deficit widened by GBP4.0 billion to GBP6.7 billion in the three months to October 2025.
"The constant rumour mill about what might or might not be in November's budget caused consumers and businesses to put the brakes on spending in October," AJ Bell's Dan Coatsworth commented. "A worse than expected GDP figure is the result of a country going into a freeze, fearing that the chancellor would hike taxes and leave less money in people's pockets. There is a real chance that November's GDP figure will be equally as gloomy given the budget didn't happen until the end of month.
"It's a disastrous situation for Rachel Reeves, who put economic growth at the heart of her Budget plan. She will have hoped that the country ended the year on the front foot, with economic progression and optimism as we move into 2026. This lacklustre GDP data paints a very different picture."
The FTSE 100 index was up 30.17 points, 0.3%, at 9,733.33. The FTSE 250 was up 157.39 points, 0.7%, at 22,009.49, and the AIM All-Share was up 4.73points, 0.6%, at 752.39.
The Cboe UK 100 was up 0.5% at 976.32, the Cboe UK 250 was up 0.8% at 19,130.39, and the Cboe Small Companies was up 0.4% at 17,542.58.
On the FTSE 100, HSBC rose 1.8%.
The bank has extended its "branch promise", guaranteeing its 327 branches will stay open until at least 2027. It will also boost investment into its branch network by around 30% next year, committing GBP55.8 million in 2026, up from the GBP42 million it spent in 2025.
HSBC UK said usage across the network has remained "robust", with an average of 825,000 customers visiting a branch each month and more than two million monthly transactions carried out through self-service machines.
On the FTSE 250, International Public Partnerships rose 1.6%.
The London-based global infrastructure investor said its "high-quality" portfolio of over 130 infrastructure projects and business continued to perform well between July 1 and Friday. It also announced that its buyback programme of up to GBP200 million has been increased to up to GBP225 million and extended to the end of March 2027.
Looking ahead, International PPL said: "The ongoing government focus on critical infrastructure and asset valuations in the secondary market for the types of projects and businesses which the company holds supports a positive outlook."
On AIM, Tribal was 7.0% higher.
The education-focused software and services provider announced that it expects to deliver full-year revenue comfortably in line with, and adjusted earnings before interest, tax, depreciation and amortisation ahead of, current market expectations. It cites consensus for revenue of GBP90.3 million and adjusted Ebitda of GBP15.5 million.
Also, Tribal intends to pay a special dividend of 1.5p per share in late January.
Small-cap Taylor Maritime rose 5.0%.
The company announced its intention to distribute to shareholders an aggregate amount of approximately USD143.4 million in the first quarter, in addition to the planned quarterly dividend of 2.00 US cents per share. Its dividend target for the current financial year is 8 cents per share in total.
Also, cash at the end of the period surged to USD139.2 million from USD3.6 million, after Taylor completed 18 vessel sales during the period for combined proceeds of USD295.8 million.
However, the firm also reported that its pretax loss swelled to USD31.1 million for the six months ended September 30 from GBP14.0 million a year ago. Time charter equivalent earnings fell 13% to USD12,031 per day from USD13,885 a year ago, given the smaller operating fleet.
Card Factory fell 26%.
The greeting cards, gifts and celebration merchandise retailer says it expects adjusted pretax profit of between GBP55 million and GBP60 million for financial 2026, if current trading trends persist. Its previous guidance was for mid-to-high single-digit-percentage growth in adjusted pretax profit from GBP66.0 million in financial 2025.
Card Factory cited lower high street footfall, which has persisted into its "most important" trading period, attributing this to weak consumer confidence.
The pound was quoted at USD1.3369 at midday on Friday in London, lower compared to USD1.3416 at the equities close on Thursday. The euro stood at USD1.1724, lower against USD1.1746. Against the yen, the dollar was trading at JPY155.96, higher compared to JPY155.24.
In Europe, the CAC 40 was 0.5% higher in Paris. The DAX 40 in Frankfurt was up 0.3%.
EU finance ministers agreed Friday to impose a EUR3 duty on all small parcels imported into the bloc starting July 1, 2026, to help tackle a flood of cheap imports by the likes of Shein and Temu.
The move comes a month after the bloc scrapped a duty exemption for packages worth less than EUR150 imported directly to consumers in the 27-nation bloc, in many cases via Chinese-founded platforms.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.2%, the S&P 500 index down 0.2%, and the Nasdaq Composite down 0.5%.
The yield on the US 10-year Treasury was quoted at 4.17%, widening from 4.12%. The yield on the US 30-year Treasury was quoted at 4.82%, widening from 4.77%.
Brent oil was quoted higher at USD61.06 a barrel at midday in London on Friday from USD60.91 late Thursday.
Gold was quoted higher at USD4,332.50 an ounce against USD4,254.97.
Still to come on Friday's economic calendar, Canada releases capacity utilisation and manufacturing sales figures.
By Emma Curzon, Alliance News reporter
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International Public PartnershipsTribal Grp.Card FactoryTaylor MaritimHSBC Holdings