London’s exporter-heavy FTSE 100 index opened lower on Friday, pressured by a stronger pound after data showed the UK’s economy surprisingly grew higher-than-expected in the second quarter.
Data showed Britain eked out unexpected growth in the second quarter, helped by a strong June performance.
It grew 0.2% in the second quarter, against the consensus for a flat reading in a Reuters poll of economists.
The FTSE 100 fell 0.6%, while the sterling broke three straight days of losses after the data.
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“Any lingering fears that the UK economy is set to fall into a recession will likely have been put to bed now with these numbers,” said Stuart Cole, chief macro economist at Equiti Capital.
The more domestically-focussed FTSE 250 index edged 0.2% down.
Miners dropped 1.1%, leading sectoral declines as metal prices fell.
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