London open: Stocks little changed after UK jobs data, ahead of US inflation

(Sharecast News) - London stocks were little changed in early trade on Tuesday as investors mulled the latest UK jobs figures and awaited the release of key US inflation data. At 0850 GMT, the FTSE 100 was up just 0.1% at 7,450.40.

Figures released earlier by the Office for National Statistics showed that the number of people unemployed ticked higher in October as real term wages fell.

The jobless rate rose 0.1 percentage point in the three months to October, to 3.7%.

Growth for both average total pay - which includes bonuses - and regular pay, which excludes them, was 6.1% over the three months, the strongest increase outside of the pandemic period. However, once adjusted for inflation, total and regular pay both fell in real terms by 2.7% year-on-year. The ONS said the fall was among the largest since comparable records began in 2001.

Average regular pay growth for the private sector was 6.9%, and 2.7% for the public sector.

The ONS said that 417,000 working days were lost because of labour disputes in October, the highest since November 2011. Another wave of industrial action gets underway this week, with rail workers, nurses and postal staff all due to strike over pay and working conditions.

The ONS data also showed an uptick in the employment rate, however, which rose 0.2 percentage points to 75.6%. The number of employees increased during the period, while the number of self-employed fell.

The economic activity rate also fell, declining by 0.2 percentage points to 21.5%, which the ONS said was driven by people aged 50 to 64.

Oanda market analyst Craig Erlam said: "While the data does indicate some additional slack in the labour market, the wages number - despite falling well short of inflation - will be of concern to the Bank of England and ensure its foot remains firmly on the brake in the short term."

Investors were also eyeing the release of the US consumer price index for November, due at 1330 GMT.

Erlam said: "Last month's CPI release gave investors real hope that in much the same way that inflation's acceleration higher this year blew expectations out of the water, the path lower may also not be as gradual as feared.

"Unfortunately, some of the data since then hasn't been so favourable - most notably the wages component of the jobs report - so a lot is now hanging on today's release. Another number below forecasts of around 7.3%, year on year, could get the excitement flowing once more."

In equity markets, Synthomer rallied after saying it had sold its laminates, films and coated fabrics businesses to Surteco North America for $255m (£208m). The cash will be used to repay debt in order to strengthen the group's balance sheet and support a reduction in leverage, the company said.

On the downside, engine maker Rolls-Royce was under the cosh as JPMorgan Cazenove maintained its 'underweight' rating on the shares and placed them on 'negative catalyst watch'.

Market Movers

FTSE 100 (UKX) 7,450.40 0.06% FTSE 250 (MCX) 18,818.02 -0.01% techMARK (TASX) 4,381.89 -0.42%

FTSE 100 - Risers

Prudential (PRU) 1,085.50p 2.31% Smurfit Kappa Group (CDI) (SKG) 3,057.00p 2.00% HSBC Holdings (HSBA) 505.40p 1.82% Mondi (MNDI) 1,476.00p 1.65% Barclays (BARC) 160.40p 1.43% BP (BP.) 468.65p 1.42% Standard Chartered (STAN) 611.40p 1.39% Smith (DS) (SMDS) 325.90p 1.31% DCC (CDI) (DCC) 4,267.00p 1.26% Ocado Group (OCDO) 677.80p 1.25%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 89.29p -3.82% London Stock Exchange Group (LSEG) 7,478.00p -1.94% Frasers Group (FRAS) 739.00p -1.86% BAE Systems (BA.) 817.20p -1.66% Relx plc (REL) 2,300.00p -1.29% SSE (SSE) 1,675.50p -1.24% Rentokil Initial (RTO) 527.20p -1.16% B&M European Value Retail S.A. (DI) (BME) 400.90p -1.06% Experian (EXPN) 2,895.00p -0.99% National Grid (NG.) 1,001.50p -0.89%

FTSE 250 - Risers

Synthomer (SYNT) 123.20p 4.94% Home Reit (HOME) 39.65p 3.26% HGCapital Trust (HGT) 350.50p 3.09% Network International Holdings (NETW) 310.60p 2.58% Wood Group (John) (WG.) 136.90p 2.36% Wizz Air Holdings (WIZZ) 2,439.00p 2.09% HarbourVest Global Private Equity Limited A Shs (HVPE) 2,200.00p 2.09% Johnson Matthey (JMAT) 2,086.00p 1.86% Auction Technology Group (ATG) 774.00p 1.57% Vietnam Enterprise Investments (DI) (VEIL) 581.00p 1.40%

FTSE 250 - Fallers

Mitchells & Butlers (MAB) 122.80p -4.14% Volution Group (FAN) 368.50p -3.79% Moonpig Group (MOON) 120.00p -3.23% ASOS (ASC) 528.00p -2.58% Serco Group (SRP) 156.00p -2.07% Trainline (TRN) 291.30p -1.99% PureTech Health (PRTC) 279.00p -1.93% QinetiQ Group (QQ.) 345.20p -1.88% Target Healthcare Reit Ltd (THRL) 77.40p -1.78% easyJet (EZJ) 373.10p -1.76%