FTSE 100 edges higher as UK economy returns to growth

Balfour Beatty surged about 9%, on track for its biggest one-day gain since August 2022, after the infrastructure firm reported a better-than-expected full-year revenue. Shares of Flutter Entertainment Plc added almost 3% after JP Morgan upgraded the gambling group to "overweight" from "neutral."

The UK's blue-chip index edged higher on Wednesday after data showed Britain's economy returned to growth at the start of 2024, while corporate earnings also added to the positive mood.

The exporter-heavy FTSE 100 was up 0.1%, as of 0814 GMT, following its strongest close in more than nine months on Tuesday. The mid-cap FTSE 250 index rose nearly 0.2%.

British gross domestic product in January grew by 0.2% month-on-month, in line with economists' expectations in a Reuters poll, boosted by a rebound in retailing and house-building. The numbers offered some relief to Prime Minister Rishi Sunak ahead of an election expected this year, after the country entered a shallow recession in the second half of 2023.

Among single stocks, Metro Bank gained 1% after the lender posted a smaller annual loss, supported by its cost-cutting efforts and as outflows stabilised towards the end of the year after an eleventh-hour capital injection. Balfour Beatty surged about 9%, on track for its biggest one-day gain since August 2022, after the infrastructure firm reported a better-than-expected full-year revenue.

Shares of Flutter Entertainment Plc added almost 3% after JP Morgan upgraded the gambling group to "overweight" from "neutral."

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