London stocks rose in early trade on Thursday as investors shrugged off uninspiring UK growth figures, with Schroders surging on takeover news.
At 0825 GMT, the FTSE 100 was up 0.3% at 10,498.61.
Data released earlier by the Office for National Statistics showed the economy grew by just 0.1% in the final months of 2025, as the services sector stagnated.
The 0.1% uptick was unchanged on the third quarter. Expectations for the fourth had ranged from 0.1% to 0.2%.
In output terms, growth was driven by a 1.2% increase in production, including a 0.9% improvement in manufacturing. But that was offset by a 2.1% slide in construction - its largest fall in more than four years - and no growth in the dominant services sector.
It is the first time there has been no growth in services GDP for two years.
In December, GDP rose 0.1% following downwardly revised growth of 0.2% November. Over 2025 as a whole, GDP is estimated to have increased by 1.3%, up from 1.1% in 2024.
Liz McKeown, director of economic statistics at the ONS, said there had been growth across all the main sectors during 2025.
"Initial estimates show GDP per head was up on the previous year, despite it contracting slightly in each of the last two quarters," she said.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Growth in Q4 was muted and narrowly driven by services and government spending, a reminder that private‑sector momentum remains thin despite hopes that Q1 will look a little brighter.
"That leaves the bigger picture unchanged: a fragile growth outlook, softer inflation ahead, and a Bank of England that should have room to cut rates over 2026."
In equity markets, Schroders shares rocketed 29% after the asset manager agreed to be taken over by US investment manager Nuveen in a £9.9bn deal.
Nuveen - which is part of the Teachers Insurance and Annuity Association of America - will pay 612p per share. The price comprises a cash consideration of 590p a share and permitted dividends of up to 22p per share. The cash consideration is a 29% premium to the closing share price on Wednesday.
Relx rose sharply as the information group said it expected strong earnings and revenue growth in 2026 after a 9% rise in underlying operating profit last year.
The company - which was recently caught up in a broader selloff of software stocks on worries about AI disruption - said it was embedding extra AI functionality in its products and developing them at a faster pace, while continuing to manage cost growth below revenue growth.
St James's Place was also in the black, having tumbled on Wednesday as wealth managers were hit by concerns about the impact of AI after US wealth platform and custodian Altruist unveiled a new AI tax planning tool.
British American Tobacco gained as it said full-year adjusted profit from operations rose 2.3% to £11.3bn, even as reported revenue dipped 1%.
Morgan Sindall rallied as it said results for 2026 were set to be ahead of expectations thanks to a strong performance from its Fit Out division.
On the downside, consumer goods giant Unilever lost ground as it said 2026 sales growth was expected to be at the bottom end of its underlying range of 4% to 6%, reflecting slower market conditions.