Driven by data revealing that the UK economy expanded at a faster pace than anticipated during the second quarter, the FTSE 100 started trading 70.84 points higher at 10,707.55. Meanwhile, Brent crude futures ticked up 0.17% to USD 102.8 per barrel, and US West Texas Intermediate (WTI) climbed 0.06% to USD 89.43 per barrel.
On Wednesday, Sterling strengthened against the dollar to trade at USD 1.3237, up from USD 1.3210 at Tuesday’s London equities close. It also moved up against the euro, reaching EUR 1.1670 compared to EUR 1.1656 previously.
Gainers & Losers
Leading the advance, SSE shares moved up 2.91% to 2,508p, while Antofagasta climbed 2.90% to 3,756p. Additional increases included National Grid up 2.81% at 1,154.50p, United Utilities Group adding 2.70% to reach 1,445p, and Severn Trent advancing 2.61% to 3,148p. Marks & Spencer Group also saw gains, rising 2.25% to 390.20p.
On the losing side, Shell dropped 0.88% to 3,562.50p, and Sage Group retreated 1.05% to 961.20p. BP declined 1.45% to 542.70p, whereas Ithaca Energy experienced the steepest drop among those listed, shedding 1.96% to 269.60p. BT Group edged down as well, losing 0.36% to 195.30p.
Greggs Raises Profit Outlook
Greggs stock climbed to a two-month peak on Wednesday following the British bakery chain’s decision to upgrade its 2026 profit outlook on the back of strengthening sales growth. Shares surged 7% to 2,006p, hovering near their 52-week high and marking their strongest position since July 30.
The bakery business noted that it now anticipates a modestly “improved” performance for 2026, superseding its prior forecast that underlying pretax profit would track around the previous year’s £172 million mark.
During the 13 weeks leading up to September 26, Greggs posted total sales growth of 7.7%. Company-managed shop like-for-like sales increased by 3.4%, accelerating from the 2.1% growth recorded in the first half of the year.
UK Economy Growth
According to the Office for National Statistics, UK GDP increased by 0.5% during the April-June period, beating the 0.4% projection and trailing the 0.6% growth seen in the first quarter. The primary driver was net trade, backed by a 2.8% surge in export volumes. Services output grew 0.6%, whereas production contracted by 0.1%.
Consumer spending increased by 0.3%, while government borrowing climbed to 5.2% of GDP from 4.2%. Elsewhere, Germany recorded 0.3% growth and France remained stagnant.
Saga Lifts Profit Target
Saga raised its financial goals as the company works toward achieving £100 million in underlying pre-tax profits by the end of the decade. The firm reported that its underlying pre-tax profit doubled to £46.6 million for the six-month period ending in July, prompting it to bump up full-year profit projections to a range of £65 million to £70 million.
The business witnessed a 100% surge in underlying profit within its holidays division. Saga attributed this to the strong popularity of its new “no-fly” packages, which bring travelers over 50 to summer getaways at UK universities.
Also Read: Stock Market Update: Nifty 50 Opened 0.23% Lower, Sensex Declined 87.92 Points as Crude Prices Remain Elevated
Global Market View
Across the Atlantic, Wall Street closed in negative territory as persistent pressure from elevated borrowing costs weighed on equities. The Dow Jones Industrial Average fell 0.3%, the S&P 500 dropped 0.2%, and the Nasdaq Composite dipped 0.1%.
In Asian trading on Wednesday, Tokyo’s Nikkei 225 advanced 1.93% to 66,753.72, China’s Shanghai Composite gained 0.31%, and Hong Kong’s Hang Seng rose 0.37%. South Korea’s Kospi, however, slipped 0.48%. In India, the Nifty 50 and the Sensex grew by 0.3% and 0.52%, respectively.
