The FTSE 100 experienced a positive trading session, extending its gains and reaching a new record high. The rise was primarily driven by weaker-than-expected labour market data, fueling speculation of an imminent interest rate cut by the Bank of England. This prospect boosted the outlook for certain sectors, particularly housebuilders.
- The FTSE 100 rose 0.3% to around the 10,500 mark.
- The UK unemployment rate unexpectedly climbed to 5.2%, the highest since 2021.
- Wage growth slowed to multi-year lows.
- RELX, Experian, and Pearson were among the top performers.
- Housebuilders Persimmon and Berkeley saw gains.
- BHP climbed nearly 2% after reporting a profit beat.
- Antofagasta fell 3% after its annual results disappointed investors.
Overall, the market reacted positively to indications of economic weakness, specifically signs of a cooling labor market. The anticipation of monetary policy easing, specifically an interest rate cut, is acting as a catalyst for gains, particularly benefiting sectors sensitive to interest rates such as housebuilding. However, individual company performance continues to be influenced by specific earnings reports, with positive results driving gains and disappointing figures leading to declines.