BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks eked out modest gains in cautious trade on Tuesday after official data showed the U.K. economy rebounded at a faster than estimated pace in the third quarter, reflecting the effects of the easing of lockdown restrictions and also some recovery of activity from the steep contraction in April.
Gross domestic product grew by a record 16 percent sequentially instead of 15.5 percent expansion estimated previously. GDP had fallen by revised 18.8 percent in the second quarter.
Although this reflects some recovery of activity following the record contraction in the second quarter, GDP was 8.6 percent below where it was at the end of 2019. The annual fall in GDP was revised to 8.6 percent from 9.6 percent in the third quarter.
Meanwhile, the U.K. budget deficit rose to the third highest level since records began in 1993, the Office for National Statistics reported.
The budget deficit excluding public sector banks widened by GBP 26 billion from the last year to GBP 31.6 billion in November.
This was the highest November borrowing and the third-highest borrowing in any month since monthly records began in 1993.
The benchmark FTSE 100 was up 23 points, or 0.4 percent, at 6,440, after having hit a near three- week low earlier in the session on concerns over the discovery of a new strain of coronavirus, which is said to be up to 70 percent more transmissible than the original.
Material and energy stocks were broadly lower, though the downside remained limited after the U.S. Congress passed a Covid-19 stimulus bill.
British Land shares rose over 1 percent. Skanska, a European development and construction company, has signed a contract with the U.K. real estate investment trust company to build a new office building in Blossom Street, London.
Vodafone Group edged down half a percent. Its unit Vodafone Vierte Verwaltungs AG announced a tender offer to all other shareholders of Kabel Deutschland Holding AG.
easyJet soared 4.5 percent. The airline has agreed with Airbus to defer deliveries of a total of 22 aircraft to financial year 2027 - 2028 from financial year 2022 - 2024.
Building materials distributor and DIY retailer Grafton Group gained 2 percent. The company has agreed to acquire Proline Architectural Hardware, a distributor of architectural ironmongery products for doors.
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