FTSE 100 climbs on smaller-than-expected GDP contraction, GSK rebound

London's FTSE 100 rose on Friday after data showed Britain's economy contracted by less than feared in the second quarter, while drugmaker GSK rebounded after heavy selling this week on litigation concerns.

London's FTSE 100 rose on Friday after data showed Britain's economy contracted by less than feared in the second quarter, while drugmaker GSK rebounded after heavy selling this week on litigation concerns. The FTSE 100 rose 0.3% by 0711 GMT and was on course for a fourth straight weekly gain, while the FTSE 250 midcap index slipped 0.1%.

The Office for National Statistics said the UK's gross domestic product 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. Drugmaker GSK rose 3.8% 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 that there is no evidence of a causal association between therapy with the heartburn drug ranitidine and the development of cancer in patient. Flutter gained 7.1% after the world's largest online betting firm said it expected to finish the year ahead of 2021 excluding an expected final year of losses in its fast growing U.S. business.