GDP report weigh on the FTSE 100

The FTSE 100 struggled yesterday after the first estimates of US GDP showed that the US economy grew at a much slower pace than expected in the first quarter, with an expansion of 1.1%, while 1.9% was expected. This fueled fears of global recession.

London shares were still in the red this morning, as GDP data affected demand expectations, with mining stocks underperforming, tracking weaker copper prices.

While NatWest posted better-than-expected earnings in the first quarter, its shares tumbled 5.9%, as it recorded outflows of 19.8 billion pounds in deposits.

Education group Pearson rose 2.8% after it said it was on track to meet its annual guidance, while Prudential rose 2.5% after posting a 30% increase in new business profit.

 

Things to read today:

European Recession Fears Fade But Inflation Picks Up (Bloomberg)

Recession Can Wait—the GDP Report’s Bright Side (WSJ)