Global stocks started the day in the red as investors grappled with the increasing possibility of a US debt default, an event that was once considered unthinkable. Compounding the concerns, Europe's largest economy, Germany, fell into recession, further dampening market sentiment.

Data released by the German statistics office on Thursday revealed that the country's economy contracted in the first quarter of 2023 compared to the Previous three months, officially entering a state of recession.

According to a second estimate, gross domestic product (GDP) fell by 0.3% for the quarter when adjusted for price and calendar effects. This Decline follows a previous contraction of 0.5% in the fourth quarter of 2022. A recession is typically defined as two consecutive quarters of economic contraction.

In London, the FTSE 100 index opened with a decline of 43.41 points or 0.6%, at 7,583.69. The FTSE 250 also experienced a downturn, slipping 76.00 points or 0.4% to 18,855.16, while the AIM All-Share dropped 1.82 points or 0.2% to 794.65.

Among the notable performers in the FTSE 100, Coca-Cola HBC witnessed a decline of 4.1% following the release of its revised medium-term growth targets. The company now expects to achieve annual organic revenue growth of 6% to 7%, up from its previous target range of 5% to 6%. Furthermore, Coca-Cola HBC reaffirmed its commitment to a 'progressive' dividend policy, representing a payout ratio of 40% to 50% of comparable earnings per share each year.

Johnson Matthey, a London-based speciality chemicals and sustainable technology firm, saw a drop of 3.1%. The company announced that its annual results were in line with expectations but fell below the prior year's figures. In the financial year that ended on March 31, Johnson Matthey reported a 6.8% decline in revenue, amounting to £14.93 billion compared to £16.03 billion the previous year. This result missed the company-compiled analyst consensus of £15.74 billion. The decline in revenue was primarily driven by lower average platinum group metal prices.

Although Johnson Matthey's pretax profit from continuing operations increased by 76% to £344 million from £195 million, it fell short of the consensus estimate of £380.3 million. The company declared an interim dividend of 22.0p per share, maintaining the annual total at 77.0p, the same as the previous year.

In the FTSE 250, Hill & Smith emerged as one of the top gainers, with its stock rising by 2.9%. The company announced a 'record trading performance' for the four-month period ending on April 30. It reported constant currency revenue growth of 18% and highlighted 'strong' profit growth compared to a relatively soft performance in 2022.

Hill & Smith expressed optimism regarding its future outlook, stating that it expects full-year operating profit to exceed analyst expectations. The current company-compiled analyst consensus for the financial year 2023 projects an underlying operating profit of £107.0 million, with a range of £105.2 million to £110.2 million.