Stocks higher in London as wage data cools, Biden Middle East visit eyed
London stocks rise on weak UK wage data & Biden's Middle East talks. Rolls-Royce cuts jobs; Bellway warns of lower volumes. London stocks moved higher on Tuesday morning, helped by weaker-than-expected UK wage inflation data and potential diplomatic developments as US President Joe Biden visits Middle Eastern leaders this week. The FTSE 100 index opened up 29.76 points, 0.4%, at 7,660.39, while the AIM All-Share was up 0.63 of a point. Other labour market statistics, including unemployment, were delayed until next week due to the Queen's funeral. Rolls-Royce gained 2.1% as it announced plans to cut 2,000-2,500 jobs as part of a cost-reduction programme under new CEO Tufan Erginbilgic. Rio Tinto reported flat iron ore output in Q3 and said it expects 2023 production to be slightly above 2022 levels. Digital 9 Infrastructure climbed 10% as the internet infrastructure investor updated on its shareholder consultation.
Veröffentlicht : vor 2 Jahren durch Alina Ivanov in Politics Finance
London stocks moved higher on Tuesday morning, helped by weaker-than-expected UK wage inflation data and potential diplomatic developments as US President Joe Biden visits Middle Eastern leaders this week.
The FTSE 100 index opened up 29.76 points, 0.4%, at 7,660.39. The FTSE 250 was up 37.53 points, 0.2%, at 17,556.92, and the AIM All-Share was up 0.63 of a point, 0.1%, at 687.44.
Wage inflation figures from the Office for National Statistics came in cooler than analyst expectations. Other labour market statistics, including unemployment, were delayed until next week due to the Queen's funeral.
In the three months to August, annual growth in average total pay, excluding bonuses, was 7.8%. This aligned with consensus forecasts. The figure for the previous three-month period was revised upwards to 7.9% from 7.8%.
Including bonuses, average pay growth moderated to 8.1%, undershooting estimates of 8.3%. It was 8.5% in the three months to July.
Analysts at Pantheon Macroeconomics said the data should encourage the Bank of England to keep interest rates unchanged at 5.25% at its November meeting.
In the FTSE 100, Rolls-Royce gained 2.1% as it announced plans to cut 2,000-2,500 jobs as part of a cost-reduction programme under new CEO Tufan Erginbilgic. The aerospace manufacturer said the restructuring aims to create a "more agile business" and build capabilities in areas like supply chain management.
Rio Tinto fell 0.8% as it reported flat iron ore output in Q3 and said it expects 2023 production to be slightly above 2022 levels. It maintained its 2022 iron ore shipment guidance.
Housebuilders were lower, with Taylor Wimpey and Barratt down 1.0% and 0.9% respectively. In the FTSE 250, Persimmon and Bellway dropped 1.4% and 2.8%.
Bellway posted a mostly weaker annual report and warned of "materially lower" volumes next year due to its reduced order book. It is targeting just 7,500 completions in 2024 versus 10,945 this year.
Digital 9 Infrastructure climbed 10% as the internet infrastructure investor updated on its shareholder consultation. It has appointed Goldman Sachs as its lead financial advisor to assess options focused on maximising shareholder value.
Themen: Markets, Joe Biden