London pre-open: Stocks to fall as investors mull GDP figures
By Michele Maatouk
Date: Thursday 16 Jul 2026
(Sharecast News) - London stocks were set to fall at the open on Thursday as investors digested the latest UK GDP data.
The FTSE 100 was called to open down around 28 points.
Figures from the Office for National Statistics showed the UK economy grew by 0.1% in May, in line with expectations.
The dominant services sector drove the growth, led by computer programming and advertising.
Over the three months to May, GDP widened by 0.7%, although the pace of growth slowed slightly compared to the revised 0.8% growth recorded in the previous quarter.
Aaron Bright, investment analyst at investing and trading platform IG, said "the numbers are far from spectacular".
"The broader picture remains one of a UK economy struggling to generate meaningful momentum, with growth sitting against a particularly challenging macro backdrop," he said. "Whilst the recent US-Iran ceasefire helped ease immediate fears of further escalation, the risk of tensions resurfacing remains a key concern for markets, with notable skirmishes in the Gulf already appearing since the ceasefire.
"With geopolitical uncertainty and the potentially dire consequences a prolonged conflict could cause still weighing on the outlook, today's data certainly won't fill investors with unbridled optimism."
Investors will also be mulling reports that Shabana Mahmood is set to be named Chancellor by Andy Burnham next week.
In corporate news, Sports Direct owner Frasers reported annual adjusted pre-tax profit of £538m, down 4% on the previous year, despite retail trading profit surging 22% to £912.5m.
The company declined to provide guidance for the current fiscal year due to its takeover bids for Hugo Boss and Accent group, but cautioned that it continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory levels through the second half of 2025/26 and into the start of FY27.
"These pressures are weighing on the entire sector, creating a prolonged and challenging environment," it said.
Data and technology firm Experian posted 8% total revenue growth and 7% organic growth for the first quarter, with strong B2B momentum across major markets offsetting softer trends in parts of Consumer Services.
Experian said it had delivered broad‑based growth across its regions in the three months ended 30 June, with North America, Latin America and the UK & Ireland all posting solid performances, while EMEA and Asia Pacific remained more subdued.
Engineering firm Rotork said it has agreed to be bought by Swiss engineering company ABB in a £4.1bn deal.
Rotork chair Dorothy Thompson said: "The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations.
"The Rotork board believes that ABB's decentralised operating model and commitment to run Rotork as a separate division will benefit the Rotork Group's business, employees and wider stakeholders. As a result, the Rotork board has unanimously agreed to recommend the offer to Rotork shareholders."
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