British stocks rose on Friday after stronger-than-expected economic data showed UK GDP expanding 0.4% in July, extending June’s 0.3% increase and exceeding forecasts for no growth. The FTSE 100 gained 0.58% as of 08:20 ET (12:20 GMT), while Germany’s DAX rose 0.42% and France’s CAC 40 advanced 0.61%. Sterling was unchanged at $1.3512 against the dollar. Annual UK growth reached 1.6%, its fastest pace since February 2025, although ING’s James Smith cautioned that the figures may overstate underlying momentum because roughly half of June’s increase came from IT, which represents 7% of the economy, and UK growth often cools in the second half of the year. The market advance came as geopolitical tensions intensified after Houthi fighters seized Yemen’s Red Sea coastline, including the Bab al-Mandeb strait, while Saudi forces carried out air raids on Mocha’s airport. Iran’s Revolutionary Guard Corps said it struck a U.S. Saildrone-type unmanned vessel in the Strait of Hormuz after the IAEA referred Iran’s noncompliance with nuclear commitments to the UN Security Council. Strait of Hormuz transits fell to seven on Thursday from 11 a day earlier and below the 10-day average of 15. Oil prices retreated on Friday but remained elevated after sharp gains in the previous session. ING expects the Bank of England to keep rates at 3.75% next Thursday, while saying a November increase remains possible. Berkeley Group cited weak buyer sentiment and political uncertainty in housing, and Trainline reported stronger-than-expected first-half revenue and net ticket sales alongside reaffirmed FY2027 guidance and a new £100 million buyback.