FTSE 100 today: shares rise as U.K. GDP falls; Pound nears $1.36; Tesco gains

Investing.com -- British shares rose on Thursday after official data showed that the country’s gross domestic product shrank by 0.3% in April, partially offsetting the 0.7% expansion recorded in the first quarter.

The blue-chip index FTSE 100 gained 0.2% and the British GBP/USD rose 0.3% against the dollar to 1.3590.

Meanwhile, DAX index in Germany dropped 0.9%, the CAC 40 in France dipped 0.1%.

U.K. economy contracts in April

The U.K. economy experienced a notable decline in April, weighed down by rising energy costs and increased taxes.

According to data from the Office for National Statistics, gross domestic product fell by 0.3% during the month, a steeper drop than the anticipated 0.1% and a partial reversal of the 0.7% growth recorded in the first quarter.

On a yearly basis, GDP rose 0.9%, easing from the previous month’s 1.1% gain.

European airline stocks tumble

European airline stocks slid, weighed down by disappointing airfare data from the U.S. and a recent rise in fuel prices.

Shares of major carriers including Tui AG NA (ETR:TUI1n), Deutsche Lufthansa AG (ETR:LHAG), International Consolidated Airlines Group S.A. (BME:ICAG), and EasyJet PLC (LON:EZJ) posted losses ranging from 2.7% to 5%, while Air France KLM SA (EPA:AIRF) and Wizz Air Holdings PLC (LON:WIZZ) also dropped sharply.

The downturn followed a slump in U.S. airline stocks after data showed a 2.7% monthly decline in American airfare prices in May.

PayPoint rises despite revenue miss as quarterly profits meet expectations

PayPoint plc (LON:PAYP) shares gained over 4% after the company published its financial results for the fourth quarter ended March, showing modest annual revenue growth, though slightly missing market expectations.

Net revenue for the period rose by 2% year-on-year to £50 million, falling short of analyst forecasts by around 6%, while profits aligned with expectations.

GS lowers Aker to sell

Goldman Sachs Group Inc (NYSE:GS) has lowered its rating on Aker BP (NYSE:BP) (LON:BP) ASA (BS:AKRBPo) to “sell” from “neutral,” citing expectations of mounting financial strain over the coming two years due to a softer macroeconomic environment.

The bank maintained its 12-month price target at Nkr 230, suggesting a potential 9% decline from current market levels.

RBC flags uncertainty for Rentokil

Rentokil Initial PLC (LON:RTO) continues to face a period of uncertainty amid underwhelming results in North America, ongoing leadership changes, and the early phases of a lengthy integration process.

Analysts at RBC Capital Markets describe the company as being in a “holding phase,” with limited near-term visibility as investors await updates on the CEO transition and the Terminix acquisition strategy.

Tesco (OTC:TSCDY) reports Q1 sales growth

Tesco PLC (LON:TSCO) posted a 5.5% rise in group like-for-like sales for the first quarter of its 2025-26 fiscal year, driven by solid performance across its businesses in the U.K., Republic of Ireland, Booker, and Central Europe.

Total group sales, excluding fuel and VAT, reached £16.38 billion for the 13-week period ending May 24.

Halma exceeds profit expectations

U.K. engineering firm Halma PLC (LON:HLMA) posted stronger-than-expected results for the fiscal year ending March 31, with adjusted pretax profit up 16% to £459.4 million and revenue rising 11% to £2.25 billion.

These figures beat analyst forecasts, and the company’s EBIT margin improved to 21.6%.

Halma said fiscal 2026 has started well, projecting upper single-digit organic revenue growth and margins slightly above the midpoint of its 19%–23% target range.

Wood Group extends Sidara takeover deadline

John Wood Group PLC (LON:WG) has granted Sidara more time to decide on a potential takeover, extending the deadline to make a firm bid or withdraw from the process to June 30.

The extension allows Sidara to further develop its offer for the engineering consultancy.

Crest Nicholson posts steady H1 results

Crest Nicholson Holdings plc (LON:CRST) posted encouraging results for the first half, signaling that its updated strategic approach is yielding positive outcomes amid evolving conditions in the housing market.

The company completed 739 homes during the first half of 2025, including those from joint ventures, marking a 6% decline from the previous year. Private sales, including bulk transactions, dropped to 107 units, down 40% from 177 in the same period last year.

This article first appeared in Investing.com