UK GDP contracts unexpectedly, Sterling slumps

UK GDP unexpectedly shrinks

Sterling slumped broadly today after UK GDP unexpectedly contracted in October, missing forecasts of modest growth.

The UK economy contracted by 0.1% month-over-month in October, falling short of market expectations for modest growth. The contraction follows a similar decline in September, with the largest negative contribution from production and no growth in the services sector. However, the economy grew by 0.1% in the three months to October.

Oil climbs toward 3-week high

WTI crude oil futures approached $71 per barrel, marking a three-week high and a weekly gain of over 5%. The rise is driven by expectations of higher demand next year, supported by China’s economic stimulus and potential supply disruptions due to tighter US sanctions on Iran and Russia. Chinese crude imports saw their first increase in seven months, while the International Energy Agency forecasts a supply increase outpacing demand growth in 2025.