FTSE 100 Gains After GDP Data

U.K. stocks eked out modest gains on Thursday and the pound reached a four-month high after data showed the U.K. economy rebounded at a faster-than-expected pace in May, adding to doubts about the possibility of an August rate cut by the Bank of England.

Real GDP grew 0.4 percent in May after showing no growth in April, the Office for National Statistics reported.

The actual growth was double the expected 0.2 percent expansion as a result of broad-based expansion in services, manufacturing and construction industries.

The benchmark FTSE 100 rose 0.4 percent to 8,225 after adding 0.7 percent on Wednesday.

In corporate news, water company Pennon soared 7.5 percent after naming an insider as its new CFO.

Peer Severn Trent rallied 3 percent after reporting a strong start to the year.

Oil services firm John Wood declined 1.2 percent after revenues fell 6 percent in the six months to 30 June.

Hays climbed 1.1 percent. The recruiter said it expects full-year profit to be around the bottom end of the market consensus range.

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