UK equities moved modestly higher on Friday, following gains across European markets, even as sterling softened and fresh data showed the British economy unexpectedly remained in contraction in October.

By 08:25 GMT, the FTSE 100 was up 0.4%, while the pound slipped 0.07% against the dollar, trading just above the 1.33 level. Elsewhere in Europe, Germany’s DAX advanced 0.7% and France’s CAC 40 gained 0.6%.

UK economic update

Figures published by the Office for National Statistics showed the UK economy shrank by 0.1% month-on-month in October, defying expectations for a return to growth. The contraction matched September’s decline and fell short of economists’ forecasts for a 0.1% expansion.

On an annual basis, GDP grew by 1.1%, unchanged from the previous month but below the 1.4% consensus estimate. Analysts pointed to uncertainty surrounding the upcoming Autumn Budget, to be delivered by Chancellor Rachel Reeves, as a potential drag on economic activity.

Corporate news

Rio Tinto Ltd (LSE:RIO) said it has entered into an interim modernised agreement with the Yinhawangka Aboriginal Group covering its mining activities on Yingawangka land. The interim arrangement builds on an agreement first signed in 2013, with a comprehensive deal expected to be completed in 2026.

Capita PLC (LSE:CPI) issued a trading update for the 11 months to 30 November, reporting that revenue in certain divisions came in below expectations. Despite this, the outsourcing group reiterated that its full-year profit guidance remains unchanged and confirmed it has reached a transition agreement for its remaining closed-book Life & Pensions contracts.

Card Factory PLC (LSE:CARD) cut its full-year profit outlook, citing continued pressure on UK consumers that has weighed on high street footfall during a key trading period. The retailer now expects adjusted profit before tax for the year to fall between £55 million and £60 million, lower than previous guidance. The company pointed to “well publicised” challenges facing consumers, which it said have affected confidence and spending behaviour.

Meanwhile, WH Smith PLC (LSE:SMWH) said it has delayed the release of its preliminary results for the financial year ended 31 August 2025. The travel retailer now plans to publish the figures on 19 December 2025, later than initially indicated in its 29 October statement.

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