London stock markets opened in mixed fashion on Thursday, May 14, as investors processed a stronger-than-expected UK growth report alongside a sharp fall in 3i Group and a steady stream of corporate updates from across the FTSE indices.
The FTSE 100 opened marginally lower at 10,323.54, essentially flat, while the FTSE 250 outperformed with a gain of 0.5% to 22,630.86 and the AIM All-Share edged down 0.1%, reflecting a bifurcation between large and mid-cap sentiment as markets weighed domestic and global signals.
The morning’s headline figure came from the Office for National Statistics, which reported that UK GDP rose 0.6% in the first quarter of 2026, accelerating sharply from revised growth of 0.2% in the previous three months and comfortably beating analyst expectations despite the economic shadow cast by the US-Iran conflict.
Services, the economy’s dominant sector, grew 0.8% over the quarter, while production output rose 0.2% and construction added 0.4%, with monthly GDP growth of 0.3% in March beating forecasts for a decline of between 0.1% and 0.2%.
Chancellor Rachel Reeves described the figures as confirmation that the government has the right economic plan, adding that “now is not the time to put our economic stability at risk,” though economists cautioned the numbers largely reflect pre-conflict conditions rather than the current environment of elevated energy costs and tightening credit conditions.
3i Group was by far the biggest drag on the FTSE 100, plunging 18% after reporting a net asset value per share of 3,030 pence, up 19% year-on-year, but warning that like-for-like sales growth at its key holding Action had slowed to 2.4% year to date, down sharply from 6.8% a year earlier, with seasonal categories hurt by cooler spring weather.
Burberry fell 2.4% despite swinging to a pretax profit of £49 million for financial 2026, from a £66 million loss a year earlier, as revenue edged down to £2.42 billion and the company noted that reduced tourist activity linked to the Middle East conflict had weighed on EMEIA performance.
Spire Healthcare surged 42% after confirming receipt of a 250 pence per share takeover proposal from funds advised by Toscafund Asset Management, which holds a secondary shareholding in the private hospital operator and is conducting confirmatory due diligence, with the Spire board indicating it would be minded to recommend a formal offer at that level.
Watches of Switzerland rose 14% after reporting record revenue of £1.83 billion for financial 2026, up 11% year-on-year and driven by particularly strong performance in the United States, which now accounts for more than half of group sales, with full-year adjusted EBIT guidance raised above prior estimates.
In currency markets, sterling was quoted at $1.3511 against the dollar and at €1.1537 against the euro, both slightly weaker on the session, while Brent crude traded at $106.41 per barrel as geopolitical tension around the Iran ceasefire kept energy prices elevated.
European markets were broadly positive, with the CAC 40 in Paris up 0.5% and the DAX 40 in Frankfurt advancing 1.1%, while Asian markets were mixed, with the Nikkei down 1.0% and the Shanghai Composite falling 1.5%.
