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London open: FTSE nudges up as investors mull jobs data
London stocks nudged higher in early trade on Tuesday as investors mulled the latest UK jobs data.
At 0830 GMT, the FTSE 100 was up 0.1% at 8,531.80.
Figures released earlier by the Office for National Statistics showed that the unemployment rate and wages grew in the three months to November.
The unemployment rate rose to 4.4% from 4.3%. Meanwhile, average earnings including bonuses grew 5.6% on an annual basis, up from 5.2% and in line with consensus forecasts.
Pay excluding bonuses was also up 5.6% from 5.2%, in line with expectations.
ONS director of economic statistics Liz McKeown said: “Pay growth picked up for a second consecutive period, again driven by strong increases in the private sector. Real pay growth, which excludes the effects of inflation, increased slightly.
“The number of employees on payroll, drawn from tax data, fell in the three months to November.
“Alongside this, the number of vacancies fell again, for the 30th consecutive period, although the total number remains slightly above its pre-pandemic level.”
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said UK markets “are feeling their way tentatively through the first day of a Trump Presidency”.
“Wage growth in the UK has hit a six-month high, driven by strong private sector pay growth, creating a solid foundation for consumer spending in 2025. Real wages, up 2.5% after inflation (excluding bonuses), are boosting household spending power – a positive for retailers and the broader economy,” he said.
“While rising wages reignite inflation concerns, softening unemployment figures and expectations of a downward trend in pay from here suggest the Bank of England is still on track to cut rates in February.”
In equity markets, Lloyds Banking was the top performer on the FTSE 100 following reports that Chancellor Rachel Reeves has launched a bid to protect car-loan providers from multibillion-pound payouts in a landmark mis-selling case.
According to the Financial Times, the Treasury has sought permission to intervene in the Supreme Court.
Britzman said the UK government’s backing in the motor finance case is a clear positive for Lloyds, which is the bank most exposed to the issue.
“By urging the Supreme Court to adopt a fair and measured approach, the Treasury is helping to ease fears of hefty penalties, potentially softening the financial blow for lenders. While Barclays has less exposure and NatWest none, the government’s bank-friendly stance should help lift confidence across the sector,” he said.
Elsewhere, Abrdn rose as it said investments returned to inflow in the fourth quarter.
Elementis gained as it said full-year operating profit was set to be ahead of market expectations following a strong fourth-quarter performance.
4Imprint was also in the black as it hailed a “strong” full-year financial performance, while Premier Foods advanced as it said full-year trading profit would be at the upper end of its previous guidance.
On the downside, Qinetiq and Essentra both fell after updates.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Lloyds Banking Group Plc | +4.77% | +2.80 | 61.46 |
| 2 |  |
Barclays | +1.47% | +4.30 | 296.15 |
| 3 |  |
Auto Trader Group Plc | +1.27% | +10.00 | 794.40 |
| 4 |  |
Marks And Spencer Group Plc | +1.01% | +3.40 | 341.60 |
| 5 |  |
3i Group Plc | +1.00% | +38.00 | 3,823.00 |
| 6 |  |
Ashtead Group Plc | +0.79% | +42.00 | 5,372.00 |
| 7 |  |
Astrazeneca Plc | +0.76% | +82.00 | 10,876.00 |
| 8 |  |
Scottish Mortgage Investment Trust Plc | +0.72% | +7.50 | 1,050.00 |
| 9 |  |
Smith (ds) Plc | +0.68% | +4.00 | 592.50 |
| 10 |  |
Halma Plc | +0.64% | +18.00 | 2,825.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Bhp Group Limited | -2.59% | -54.00 | 2,032.00 |
| 2 |  |
Anglo American Plc | -1.49% | -39.00 | 2,581.50 |
| 3 |  |
Banco Santander S.a. | -1.33% | -5.50 | 406.50 |
| 4 |  |
Haleon | -1.18% | -4.40 | 369.00 |
| 5 |  |
Sainsbury (j) Plc | -1.13% | -3.00 | 261.80 |
| 6 |  |
Associated British Foods Plc | -1.10% | -22.00 | 1,980.00 |
| 7 |  |
Glencore Plc | -0.99% | -3.85 | 383.35 |
| 8 |  |
Bt Group Plc | -0.98% | -1.40 | 140.75 |
| 9 |  |
Diageo Plc | -0.88% | -21.50 | 2,416.50 |
| 10 |  |
Antofagasta Plc | -0.79% | -14.00 | 1,766.50 |
US close: Stocks higher ahead of MLK Day break
Wall Street stocks were in the green at the close of trading on Friday as traders prepped for a three-day break.
At the close, the Dow Jones Industrial Average was up 0.78% at 43,487.83, while the S&P 500 advanced 1.00% to 5,996.66 and the Nasdaq Composite saw out the session 1.51% firmer at 19,630.20.
The Dow closed 334.70 points higher on Friday, more than reversing losses recorded in the previous session as Q4 earnings season began to pick up steam.
Stocks were in the green on Friday as softer-than-expected consumer and producer price indexes continued to boost sentiment and show that inflationary pressures appeared to be easing somewhat, while solid earnings from a number of that nation’s biggest banks also gave major indices a boost towards the end of the week.
Market participants also looked ahead to next week, with trading halted on Monday in observance of Martin Luther King Jr. Day. Donald Trump will also take the oath of office and be inaugurated as president for the second time on Monday.
On the macro front, building permits decreased by 0.7% month-on-month in December to a seasonally adjusted rate of 1.48m, according to the Census Bureau, while housing starts surged 15.8% to 1.49m, the biggest jump since March 2021.
Elsewhere on the data front, US industrial production increased 0.5% month-on-month in December, according to the Federal Reserve, the first gain in six months, following an upwardly revised 0.6% drop in November.
Tuesday newspaper round-up: Trump, Santander, Heathrow
Donald Trump signed a memorandum on inflation and multiple orders aimed at lowering energy prices, but the incoming president’s advisers offered few details on the policies, raising serious questions about whether the new administration will be able to address one of Americans’ most pressing concerns. During a press call on Monday morning, incoming White House advisers pledged that Trump would pursue an “all of government approach to bringing down costs for American citizens” but they declined to outline concrete steps that the administration would pursue to lower prices. – Guardian
Santander has rushed out a note to senior managers after it emerged that the lender’s Spanish owner is reviewing the future of its UK business amid mounting frustrations over regulation. The chief executive of Santander’s UK corporate and commercial bank, John Baldwin, sent out a memo outlining how to respond to clients and its 21,000 UK staff, who have been rattled by news that the bank could be put up for sale. – Guardian
More than three quarters of a million low-paid hotel and restaurant workers will be dragged into the National Insurance system under Rachel Reeves’s “regressive” changes. The Chancellor’s decision to lower the threshold for employer National Insurance (NI) contributions means 774,000 hospitality sector workers will be newly eligible for the tax, according to UKHospitality. – Telegraph
Rachel Reeves is set to back a third runway at Heathrow as Labour steps up efforts to boost economic growth. The Chancellor is preparing a sweeping endorsement of airport expansion as the government seeks to bolster its pro-growth credentials in the face of a stalling economy. In addition to providing support for the troubled effort to build a third runway at Heathrow, the government is understood to be poised to approve a second runway at Gatwick and greenlight an application for a near doubling of capacity at Luton. – Telegraph
Global chief executives have ranked the UK the second most important market for international investment, beaten only by America. The UK rose two places in the annual global CEO survey by PwC, the accounting and consulting firm. It is the highest position secured by Britain in the 28-year history of the survey. – The Times
