The UK’s top stock market index moved higher on Tuesday as the latest official figures showed the jobs market was stronger than expected.
London’s FTSE 100 had been treading water but made some late afternoon gains, moving 24.98 points higher, or 0.3%, to close at 8,235.23.
Mining giants Antofagasta, Glencore and Anglo American were among the day’s biggest fallers after oil prices retreated, following an increase on Monday.
The price of Brent crude oil was 1.7% lower at 80.90 US dollars per barrel.
Official figures on Tuesday morning showed a surprise drop in the rate of unemployment in the three months to June, to 4.2% from 4.4% over the previous three months.
The data also highlighted a “modest increase” in employment for the quarter, another sign of strength in the jobs market.
Richard Hunter, head of markets at Interactive Investor, said UK markets were boosted in the morning after the economic release “which showed that the labour market is stronger than expected, in sharp contrast to the recent US release which sent markets into a brief tailspin”.
“The numbers go some way in justifying the Bank of England’s recent decision to cut interest rates given a relatively stable economy, although the timing and amount of the next cut is up for debate, swinging from a possible November reduction to nothing further this year at all.”
Elsewhere in Europe, France’s Cac 40 moved 0.35% higher and Germany’s Dax was up 0.48%.
It was a stronger start to top markets in the US, with the S&P 500 up about 1% and Dow Jones up 0.5% by the time European markets closed.
The pound was also strengthening after the latest labour market data. It was up 0.4% against the US dollar at 1.282, and 0.2% against the euro at 1.171.
In company news, shares in Crest Nicholson plunged by a fifth after rival housebuilder Bellway said it was walking away from a potential takeover approach.
Bellway last month put forward a £720 million possible takeover offer, which Crest had said it was “minded” to accept.
But on Tuesday it was confirmed that a firm offer would not be made, although Bellway did not explain its reason for taking the bid off the table. The decision perturbed investors with shares in Crest closing 20.7% lower.
Shares in Just Group surged after the financial group beat expectations with underlying operating profit of nearly £250 million for the first half of the year, 44% higher than the previous year.
This was driven by more large corporate pension deals, which Just Group said was a growing market with more firms wanting to de-risk their pension schemes and focus on growing the business. Shares in Just Group were 14.5% higher at close.
The biggest risers on the FTSE 100 were Admiral Group, up 59p to 2,757p, Persimmon, up 32.5p to 1,610p, Sainsbury’s, up 4.6p to 274.2p, Severn Trent, up 42p to 2,556p, and United Utilities, up 16.2p to 1,005p.
The biggest fallers were Antofagasta, down 41p to 1,838.5p, Marks & Spencer, down 5.7p to 317.5p, Glencore, down 4.85p to 405.4p, Pershing Square, down 34p to 3,500p, and Vodafone, down 0.7p to 73.74p.
Most Popular
Comments / 0