Stocks in London were on the up on Friday afternoon, though not by enough to claw back the losses from a tough third quarter for equities.
Spirits on Friday were lifted by a UK gross domestic product reading. On the fiscal policy front, UK Chancellor Kwasi Kwarteng and Prime Minister Liz Truss faced the OBR after a now infamous mini-budget last week.
The FTSE 100 index was 31.82 points higher, 0.5%, at 6,913.41. Friday rounds off a tough quarter for equities, which has seen the FTSE lose around 4%.
The FTSE 250 was up 223.27 points, 1.3% at 17,013.67, and the AIM All-Share was 3.21 points, 0.4% at 801.60.
The Cboe UK 100 was up 0.8% at 690.71, the Cboe UK 250 was up 1.1% at 14533.39, and the Cboe Small Companies was up 0.9% at 12692.94.
Market sentiment was lifted by better-than-expected figures for UK gross domestic product.
UK second quarter GDP rose 0.2%, according to a final reading, defying the initial print which showed a 0.1% decline.
Consensus, according to FXStreet, had not been expecting any revision to the figures.
Meanwhile, the Office of Budget Responsibility said it will deliver an ‘independent’ forecast of the government's controversial economic plan following a meeting with the prime minister and chancellor.
The unusual meeting between Truss, Kwarteng and the independent spending watchdog, which appeared to last under 50 minutes, came amid market turmoil following last week's mini-budget.
In a statement published shortly after the meeting, the OBR said it will deliver an initial forecast - which ‘will, as always, be based on our independent judgment about economic and fiscal prospects and the impact of the government's policies’ - to the chancellor on October 7.
It said it will set out the full timetable up to November 23 next week, when the chancellor is due to reveal his highly-anticipated medium-term fiscal plan.
The meeting came amid widespread demands for a credible fiscal forecasts, after last Friday's 'fiscal event' rocked the markets and tanked the value of the pound.
Sterling has since staged something of a recovery, however. The pound was quoted at $1.1097 at midday Friday, higher compared to $1.1033 at the close on Thursday.
In European equities on Friday, the CAC 40 in Paris was up 1.0%, while the DAX 40 in Frankfurt was up 0.7%.
Inflation in the eurozone is forecast to accelerate faster than expected in September, according to preliminary figures from the statistical office of the EU.
Eurostat's flash estimate showed annual inflation is expected to reach 10% in September, picking up pace from 9.1% in August.
Inflation sped up quicker than predicted, overshooting FXStreet-cited consensus of 9.7%.
The figure all but ensure that the European Central Bank will enact a 75 basis point rate hike when it next meets.
The euro was on the back foot on Friday, however. The single currency stood at $0.9766 midday Friday, lower against $0.9781 on Thursday. Against the yen, the dollar was trading at JP¥144.50, higher compared to JP¥144.48 late Thursday.
In London, housebuilders led the way on the FTSE 100. Shares in the sector have suffered recently, as investors worry over rising interest rates.
Barratt Developments was up 4.2%, Taylor Wimpey gained 2.8% and Persimmon rose 3.4%.
Among midcaps, JLEN Environmental Assets was up 6.9% after it said it has bought a 50% equity stake Gigabox No 4, which holds the development rights to construct a battery energy storage plant in Scotland.
The environmental infrastructure investment fund said the 49.9 megawatts lithium-ion battery energy storage plant is based in Angus, Scotland.
The acquisition will see JLEN invest up to £16.4 million, with construction ready to start in early 2024.
The project will be connected to the Scottish Hydro Electric Power Distribution PLC's distribution network and has a 49.9 megawatts import and export connection.
JLEN added that the connection will be initially with a capacity of 45 megawatts, increasing to the full capacity by early 2025.
Fellow renewables investor, Bluefield Solar was up 4.3%.
It reported a net asset value total return of 28% in its financial year. NAV per share rose to 140.30 pence at June 30 from 115.83p a year before.
It boasted strong financial footing, and said it remains a ‘safe haven’ for investors.
On AIM, Science in Sport fell 29%.
The sports nutrition company said it is beginning a strategic review, stating its current market capitalisation ‘fundamentally undervalues the company’.
The review could result in the sale of the company or of certain assets, it said.
In the six months to June 30, SIS' loss widened to £7.2 million from £2.9 million a year before. It is also planning a placing to raise £5.0 million.
Stocks in New York were called higher, with the DJIA called up 0.8%, the S&P 500 index up 0.9%, and the Nasdaq Composite expected 0.9% higher.
On the US economic calendar, there is a core personal consumption expenditures reading. Core PCE is the Federal Reserve's preferred inflationary gauge.
Brent oil was quoted at $89.23 a barrel at midday Friday, up from $88.58 late Thursday. Gold was quoted at $1,665.33 an ounce Friday, up against $1,658.20.
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