Market Report: Santa hits pause as inflation refuses to die quietly

• FTSE 100 flat at the open
• UK GDP disappoints, down 0.1%
• Consumer confidence at 4-month high
• Boohoo deems Ashley and Lennon inappropriate
• US producer prices hotter than expected
• EIA lowers 2025 outlook for Brent Crude prices

Derren Nathan, head of equity research, Hargreaves Lansdown:

“Friday the 13^th hasn’t started in too terrifying a fashion, with the FTSE 100 flat at the open. That’s after small losses incurred earlier in the week, suggesting markets weren’t too hopeful of anything special in today’s GDP figures.

The UK economy has failed to deliver an early Christmas present for Sir Keir Starmer and Rachel Reeves, after it unexpectedly contracted 0.1% in October with construction and manufacturing both showing weakness, and services stagnating.

On a brighter note, consumers are feeling more optimistic than they have for a while with the GfK consumer confidence index reaching a four-month high in December of minus 16. But with the major purchase index unmoved since last month, it may be more mince pies than new TVs that feel the benefit this Christmas. That reflects ongoing concerns around the prospects for growth in 2025. Confidence levels for the economy over the next 12 months remained unchanged at minus