London open: Stocks flat, sterling gains as investors mull jobs data

London stocks were flat in early trade, while sterling rallied as the latest UK jobs data reinforced expectations of a rate hike by the Bank of England.

At 0845 GMT, the FTSE 100 was steady at 7,351.27, while sterling was up 0.4% against the dollar and the euro.

Data out earlier from the Office for National Statistics showed the unemployment rate fell again in September, while the number of workers on payrolls rose despite the end of the furlough scheme.

The number of workers on payrolls rose 0.6%, or by 160,000 between September and October to 29.3m.

Sam Beckett, ONS head of economic statistics, said: "It might take a few months to see the full impact of furlough coming to an end, as people who lost their jobs at the end of September could still be receiving redundancy pay.

"However, October's early estimate shows the number of people on the payroll rose strongly on the month and stands well above its pre-pandemic level."

Meanwhile, the unemployment rate fell to 4.3% in the three months to September from 4.5% in August, coming in slightly below consensus expectations of 4.4%.

In equity markets, Vodafone was the standout gainer on the FTSE 100 as it lifted earnings and cash-flow guidance after reporting a rise in first-half adjusted core profits.

Intermediate Capital advanced after well-received first-half results, while drinks group Diageo ticked higher after raising its medium-term sales growth guidance, driven by market share across its operating regions.

Restaurant Group surged to the top of the FTSE 250 as it upped its full-year earnings expectations following like-for-like sales outperformance versus the market across its Wagamama, pubs and leisure businesses.

Homeserve traded up as it lifted its dividend and posted a jump in interim profit and revenue thanks to a strong performance in North America and Continental Europe and from its Home Experts business.

On the downside, Premier Foods slumped as the Mr Kipling and Oxo owner reported a decline in first-half profit and revenue as the benefit of lockdowns faded, with people eating out more as restrictions were lifted.

Market Movers

FTSE 100 (UKX) 7,351.27 -0.01%
FTSE 250 (MCX) 23,608.57 -0.06%
techMARK (TASX) 4,612.77 0.11%

FTSE 100 - Risers

Vodafone Group (VOD) 117.60p 4.53%
Intermediate Capital Group (ICP) 2,418.00p 3.03%
Diageo (DGE) 3,907.50p 2.37%
British Land Company (BLND) 526.40p 1.74%
Intertek Group (ITRK) 5,206.00p 1.56%
Land Securities Group (LAND) 720.80p 1.49%
BP (BP.) 346.15p 1.35%
BT Group (BT.A) 166.95p 1.21%
Royal Mail (RMG) 450.80p 1.14%
Royal Dutch Shell 'A' (RDSA) 1,692.40p 0.95%

FTSE 100 - Fallers

Smith (DS) (SMDS) 384.80p -1.69%
Severn Trent (SVT) 2,780.00p -1.49%
Kingfisher (KGF) 336.30p -1.29%
Smurfit Kappa Group (CDI) (SKG) 3,909.00p -1.24%
Associated British Foods (ABF) 1,997.50p -1.21%
St James's Place (STJ) 1,565.50p -1.17%
Spirax-Sarco Engineering (SPX) 16,940.00p -1.14%
Croda International (CRDA) 9,808.00p -1.13%
AstraZeneca (AZN) 8,872.00p -1.07%
Unilever (ULVR) 3,867.00p -1.04%

FTSE 250 - Risers

Restaurant Group (RTN) 88.30p 11.35%
JTC (JTC) 928.00p 3.69%
Homeserve (HSV) 877.50p 2.45%
Indivior (INDV) 238.40p 2.41%
Harbour Energy (HBR) 375.00p 2.40%
Wood Group (John) (WG.) 204.20p 2.25%
Trainline (TRN) 305.00p 2.21%
HGCapital Trust (HGT) 429.50p 2.02%
Domino's Pizza Group (DOM) 371.60p 1.53%
Endeavour Mining (EDV) 2,040.00p 1.49%

FTSE 250 - Fallers

Premier Foods (PFD) 107.60p -5.78%
AO World (AO.) 128.80p -3.88%
Kainos Group (KNOS) 1,804.00p -3.06%
Genuit Group (GEN) 618.00p -2.98%
FDM Group (Holdings) (FDM) 1,200.00p -2.12%
Cineworld Group (CINE) 65.78p -1.82%
CMC Markets (CMCX) 271.00p -1.63%
Dechra Pharmaceuticals (DPH) 5,105.00p -1.26%
Reach (RCH) 325.50p -1.21%
Pantheon International (PIN) 327.00p -1.21%