# FTSE 100 climbs on smaller-than-expected GDP contraction, GSK rebound Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-12 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: FTSE 100 Rises on Positive UK GDP Data Meta Description: London's FTSE 100 climbed as UK GDP drop was less than expected. GSK stabilises post litigation concerns. Full analysis here. URL: https://financedigest.com/ftse-100-climbs-on-smaller-than-expected-gdp-contraction-gsk-reboundhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-12t073233z2lynxmpei7b08ortroptp4britain-stocks-1736815481238-compressed.jpg) By Sruthi Shankar (Reuters) – London’s FTSE 100 rose on Friday after data showed Britain’s economy contracted less than feared in the second quarter, while drugmaker GSK steadied after heavy selling this week on litigation concerns. The FTSE 100 rose 0.6% and was on course for a fourth straight weekly gain, while the FTSE 250 midcap index edged up 0.1%, also set for a weekly rise. The [Office for National Statistics said the UK’s gross domestic product](https://www.financedigest.com/how-a-strategic-office-design-can-affect-the-wellbeing-and-productivity-of-employees.html "How a strategic office design can affect the wellbeing and productivity of employees") fell by 0.1% in the June quarter, compared with forecasts for a 0.3% drop. However, the data still pointed to growing weakness among consumer-facing sectors of the economy, like retail and restaurants, that are most exposed to a worsening [cost-of-living crisis](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas"). The fall in UK [GDP during the second quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter") was largely down to noise,” James Smith, economist at ING wrote in a note. But the risk of recession is rising quickly, with gas futures hitting new highs for next winter and our latest estimates suggesting the household energy price cap could come close to 5,000 pounds in the [second quarter of next year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row"). Much now depends on fiscal [policy announcements](https://www.financedigest.com/impact-com-announces-new-global-parental-leave-policy.html "impact.com announces new global parental leave policy") in the autumn. Sterling lost 0.4%, supporting the [dollar earners on the FTSE 100 including oil](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") majors Shell and BP. Nearly two-third of the [revenue from FTSE 100 companies](https://www.financedigest.com/generic-oncology-drugs-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Generic Oncology Drugs Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") are made overseas. (Graphic: [Looming recession](https://www.financedigest.com/analysis-euro-peers-over-the-cliff-at-dollar-parity-as-recession-looms.html "Analysis-Euro peers over the cliff at dollar parity as recession looms"), https://graphics.reuters.com/GLOBAL-MARKETS/THEMES/akpezkowevr/chart\_eikon.jpg) Drugmaker GSK rose 3.0% after shedding about 16% in the past two sessions on concerns about U.S. litigation focused on a heartburn drug that contained a probable carcinogen. [GSK said on Thursday there is no evidence of a causal association between therapy with the heartburn drug](https://www.financedigest.com/gsk-bets-2-billion-on-bellus-cough-drug-to-soothe-pipeline-fears.html "GSK bets billion on Bellus cough drug to soothe pipeline fears") ranitidine and the development of cancer in patient. Haleon, GSK’s recently spun-off consumer health unit, [edged 0.3% higher](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain"). Flutter jumped [10.5% after the world’s largest online betting firm said it expected to finish the year ahead](https://www.financedigest.com/mfe-offers-to-buy-1-05-stake-in-mediaset-espana-from-vivendi-ahead-of-delisting.html "MFE offers to buy 1.05% stake in Mediaset Espana from Vivendi ahead of delisting") of 2021 excluding an expected final year of losses in its fast growing U.S. business. At the bottom of the midcap index was 888 Holdings Plc, which fell 8.3% after the bookmaker reported a fall in its first-half interim profit, dented by tightened UK online gambling safety measures and the [cost-of-living crisis](https://www.financedigest.com/britain-urges-banks-to-offer-mortgage-flexibility-in-cost-of-living-crisis.html "Britain urges banks to offer mortgage flexibility in cost-of-living crisis"). (Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---