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UK stocks traded higher on Friday, with the FTSE 100 up by 0.02%, this positive market movement was driven by encouraging economic data indicating that Britain's performance since the onset of the COVID-19 pandemic had been more robust than previously estimated, which in turn boosted investor sentiment. Specifically, the data confirmed that the UK's gross domestic product (GDP) in the second quarter of 2023 had grown by 0.2% compared to the previous quarter, in line with economists' forecasts. The Office of National Statistics released revisions to official data, and it was revealed that the second quarter GDP was 1.8% larger than in the final quarter of 2019, just before the pandemic began. Moreover, this growth rate outpaced that of both Germany and France. In response to this positive economic news, stocks in the consumer staples and discretionary sectors experienced gains. Personal goods, retailers, and homebuilders shares all rose by over 1%.

On the positive side of the ledgerUK water supplier Severn Trent saw its shares rise by 2.3% to 2,314 pence, making it one of the top percentage gainers on the FTSE 100 index. This increase in stock price came in response to the company's announcement of its plans to raise £1 billion (approximately $1.2 billion) in new equity, with £500 million of that amount coming from Qatar's sovereign wealth fund. The purpose of this capital raise is to support Severn Trent's investment initiatives and environmental efforts to clean up rivers. The equity increase is expected to represent about 19% of the company's issued share capital. Severn Trent also disclosed plans for £12.9 billion in total expenditure over the next five years within the regulatory period. This investment program is anticipated to create around 7,000 jobs in central England.JPMorgan noted that this announcement could have a negative impact on United Utilities and Pennon, especially the latter, as it is more highly leveraged. The expectation is that investors may now anticipate equity raises from both United Utilities and Pennon, which could lead to an overhang on their stocks. JD Sports Fashion PLC experienced a positive boost in their stock prices, driven by a favorable trading update from rival company Nike. Nonetheless, the positive read-across from Nike's results had a beneficial impact on the stock prices of JD Sports, reflecting the interconnectedness of the sportswear industry and how strong performance from one major player can influence market sentiment for others in the sector.

Shell is sitting at the bottom of the blue chip index shedding just under 2% as several Shell employees have expressed their concerns and dissatisfaction with the company's direction, particularly its move away from renewable energy, in an open letter addressed to the CEO. The letter, authored by two employees from Shell's low-carbon division, was posted on the company's internal web platform and subsequently gained attention. The employees voiced their deep concerns regarding Shell's lack of leadership in the energy transition, particularly its decision to scale back investments in renewable energy. This shift in strategy was highlighted during the company's investor day in June when Shell's CEO, Wael Sawan, announced plans to reduce investments in renewables. The open letter, which received significant support from hundreds of colleagues within the company, underscores the growing importance of renewable energy and sustainability in the global energy landscape. It also reflects the desire among some employees to see their company take a more proactive role in the transition to cleaner and more sustainable forms of energy.

FTSE Bias: Bullish Above Bearish below 7550

• Below 7500 opens 7370 
• Primary support is 7370
• Primary objective 7858
• 20 Day VWAP bullish, 5 Day VWAP bullish

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