FTSE 100 Edges Higher as Pound Strengthens on UK GDP Data

British shares nudged up on Tuesday, while the pound gained against the U.S. dollar after official figures showed the UK economy expanded by 0.3% in the second quarter of 2025.

By 12:57 GMT, the FTSE 100 was up 0.2%, with GBP/USD climbing 0.1% to above 1.34. Elsewhere in Europe, Germany’s DAX rose 0.1%, while France’s CAC 40 slipped 0.2%.

UK Economic Growth Slows

Data from the Office for National Statistics confirmed that the UK economy grew 0.3% from April to June, signaling a notable slowdown compared with the first quarter. The quarterly figure was unchanged from the ONS’s initial estimate. On an annual basis, GDP was 1.4% higher than a year ago, slightly revised up from an initial 1.2% projection.

Corporate Highlights

• Oil majors BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL) declined after reports that OPEC+ may accelerate production increases in the coming months, potentially boosting supply.
• 3i Infrastructure PLC (LSE:3IN) rose after posting first-half returns above expectations, driven by strong performance from its largest holding, TCR. The firm said it is on track to exceed its target return for the period ending September 29 and deliver its full-year dividend of 13.45p, fully covered by net income. Management emphasized a disciplined pricing approach despite an active asset pipeline.
• A.G. Barr PLC (LSE:BAG) reported a 20.1% rise in adjusted pre-tax profit for H1, reaching £35.2 million for the 26 weeks ending July 26, up from £29.3 million a year earlier. Revenue rose 3.1% to £228.1 million, while operating margin expanded from 13% to 15%. The Scottish soft drinks maker attributed growth to margin gains and strong sales of its Boost brand.
• Close Brothers Group PLC (LSE:CBG) swung to a £122.4 million full-year loss after taking a £165 million provision for motor finance commission costs, alongside additional charges of £33 million for customer remediation and £47.5 million from rental businesses. The total offset the firm’s underlying profitability.
• ASOS PLC (LSE:ASC) warned that full-year revenue will likely fall short of expectations as consumer demand remains weak, with profit projected at the lower end of guidance. Shares tumbled over 10% in early trading. The online fashion retailer is working to refresh its fast-fashion image while cutting costs amid growing competition from Chinese rivals and U.S. tariffs.

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