Stock Market Updates: FTSE 100 Higher Despite UK Recession, US Economy Growth

FTSE 100 and European stocks were higher on Thursday, with Wall Street following suit, as the US economy showed stronger growth than expected in the last quarter of the previous year. US gross domestic product (GDP) rose by 3.4% in the final quarter compared to the same quarter a year earlier, according to the Bureau of Economic Analysis (BEA). This was an increase from the 3.2% measured in the second reading, with consumer spending and non-residential fixed investment contributing to the growth.

Meanwhile, the UK officially entered a recession in the second half of 2023, with gross domestic product falling by 0.3% in the last three months of the year. This marked two consecutive quarters of decline, with a sharper fall than economists had anticipated.

Pierre Veyret, a technical analyst at ActivTrades, noted that equities in Europe were trading slightly higher, with market optimism remaining high. Investors are banking on upcoming rate cuts from central banks globally, reflecting confidence in the market. The recent dovish hints from the ECB and FED officials, along with reassuring inflation trends, are driving market sentiment.

Despite some indices trading at record levels, investors are hesitant to exit the bullish trend, fearing they might miss out on the rally. The news of the UK recession and the positive growth in the US economy are key factors influencing market movements.

Stay tuned for live updates throughout the day as the market continues to react to economic developments and investor sentiment.