FTSE 100 to Hit Record Open Amid Underwhelming GDP Growth Forecast
The UK economy’s slower-than-anticipated growth has set the stage for a unique session on the stock market. Recently released data indicates that the FTSE 100 is projected to reach record highs, buoyed by strong market sentiments despite underwhelming GDP figures.
FTSE 100 Performance and Economic Data
On Thursday, London’s FTSE 100 index is expected to open 49 points higher. This performance comes on the heels of a notable increase in value, following the index’s close at a record high of 10,472.11 the previous day.
However, economic indicators from the Office for National Statistics reveal a lackluster growth rate. The UK’s gross domestic product (GDP) grew by a mere 0.1% in the fourth quarter of 2025, matching the growth rate of the previous quarter. Economists had predicted a slight improvement, with a forecasted growth of 0.2%.
Year-over-Year GDP Analysis
- Fourth Quarter 2025 GDP Growth: 0.1%
- Third Quarter 2025 GDP Growth: 0.1%
- Year-on-Year GDP Growth: 1.0%
- Previous Year-on-Year Growth: 1.2%
- Consensus Estimate for Year-on-Year Growth: 1.2%
The year-on-year GDP growth has declined from 1.2%, falling short of the anticipated consensus estimate. These figures suggest challenges for the UK economy, even as market conditions remain optimistic.
Noteworthy Market Developments
While the FTSE 100 is set to thrive, notable moves are being made by leading companies within the index. British American Tobacco has announced a £1.3 billion share buyback initiative for 2026, following an adjusted operating profit increase of 2.3% in 2025. Unilever has also revealed plans for a €1.5 billion share buyback driven by improved sales momentum.
Meanwhile, Schroders PLC is transitioning through a significant acquisition, agreeing to a £9.9 billion cash takeover by the US firm Nuveen. This move will strengthen Nuveen’s position in the global asset management sector.
Future Outlook
Despite the slow GDP growth, the FTSE 100 appears poised to break new records. Market analysts will continue to monitor economic developments closely. The performance of major companies and their strategic decisions will play a crucial role in shaping market dynamics in the coming months.
