Welcome back to City AM’s FTSE 100 liveblog.

The UK’s blue-chip index is set to drop, according to IG futures.

The Office for National Statistics (ONS) will release its gross domestic product (GDP) figures for July this morning, with economists expecting to see recent growth grind to a halt.

The UK’s economy grew by 0.3 per cent last year, as hospitality and leisure firms took a boost from World Cup fever and record summer temperatures. But soaring energy prices and fragile consumer confidence has put growth in jeopardy, analysts say.

Economists for Deutsche Bank said they were expecting the economy to “slow from its current torrid pace of growth”. They said: “The real income shock from the Middle East has yet to fully filter through the data.”

Further signs of slowing growth are likely to fuel expectations that the Bank of England could hike interest rates, even as soon as next week’s meeting of its Monetary Policy Committee (MPC).

Danni Hewson, AJ Bell’s head of financial analysis, said: “Three rate setters have already made the case for making a pre-emptive strike, a case which will have been strengthened over recent days as the price of Brent crude has shot back over the $100 a barrel mark.

“Putting up interest rates in the UK won’t lower geopolitical tensions or bring down international energy prices, but it does risk weakening domestic demand at exactly the moment households and businesses are struggling to maintain a recent uptick in confidence.”

Oil prices surged higher on Thursday. Brent crude – the international benchmark for oil prices – gained a whopping seven per cent in the day to teeter below $109 per barrel, the highest level since May.

We’ll be bringing you the latest market updates and analysis.

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