FTSE 100 Live: UK Jobs Market Weakens, Rate Cut Expected as Oil Falls Below $60
The FTSE 100 index faced pressure on Tuesday as the UK jobs market showed signs of weakening, with unemployment rising to its highest level outside the pandemic in nearly a decade. The unemployment rate increased to 5.1%, fueling expectations that the Bank of England may announce an interest rate cut on Thursday. Most City analysts anticipate the base rate dropping to 3.75%, the lowest since February 2023.
Labour Market Weakens as UK Unemployment Hits 5.1%
The Office for National Statistics reported that payroll numbers fell by 38,000 in November, while the number of employees on payroll decreased by 171,000 year-on-year. Liz McKeown, ONS Director of Economic Statistics, noted that subdued hiring activity, especially among younger age groups, contributed to the rise in unemployment. Wage growth has slowed, with private sector regular pay growth dipping to 3.9% in line with forecasts.
This cooling in the labour market has increased hopes that the Bank of England will implement a rate cut to support economic growth, potentially improving mortgage affordability for households.
FTSE 100 Reacts to Oil Price Drop and Corporate News
London’s top-flight index slipped 0.3%, or 28.85 points, to 9722.46, following Monday’s 1.1% gain. BP and Shell were major contributors to the decline, as Brent Crude fell 1.5% to $59.54 per barrel—the lowest price in nearly five years—amid oversupply concerns and progress toward a Russia-Ukraine peace deal. BP closed at 433.75p, down 3.7p, while Shell fell 27.75p to 2670.5p.
On the other hand, housebuilders Persimmon and Barratt Redrow benefited from the potential rate cut, rising 5.5p to 1309p and 1.4p to 360.6p, respectively. Conversely, defence stocks BAE Systems and Babcock International weakened, along with Rolls-Royce, despite its £1 billion share buyback programme being extended by £200 million.
Hollywood Bowl Reports Record Revenues
Amid broader market uncertainty, Hollywood Bowl posted record revenues of £250.7 million for the year ending September, up 8.8% from the previous year. The FTSE 250-listed company attributed the growth to dynamic pricing and expansion to 77 UK sites and 15 in Canada. Despite pre-tax profits falling 8.6% to £46 million, shares rose 3% to 288p.
US Labour Market in Focus
Global investors are keeping an eye on delayed US labour market data, which will include payrolls for October and November. Deutsche Bank expects a decline of 60,000 jobs in October, followed by a rebound of 50,000 in November, with the unemployment rate potentially reaching a four-year high of 4.5%. Analysts note that a softer US labour market could influence the Federal Reserve’s decisions on interest rate cuts in early 2026.
Wessex Water Ordered to Invest £11 Million
In regulatory news, Wessex Water will pay £11 million toward wastewater network upgrades following enforcement by Ofwat. The investment will be funded by shareholders rather than customers, allowing the firm to avoid fines while improving infrastructure.
Market Outlook
Despite some gains by housebuilders and leisure stocks, the FTSE 100 remains cautious amid falling oil prices, weaker jobs data, and mixed global signals. Investors are closely monitoring Thursday’s Bank of England meeting and upcoming US labour statistics, which could influence market direction in the weeks ahead.
FTSE 100 live, UK unemployment rate, Bank of England rate cut, oil price below $60, London stock market, FTSE 100 today, BP shares, Shell shares, Rolls-Royce buyback, Hollywood Bowl revenues, UK labour market news, US jobs data, UK interest rates, FTSE 250 companies
0 Comments