London midday: Stocks in the black after jobs data
London stocks were still in the black by midday on Tuesday following better-than-expected UK jobs data.
The FTSE 100 was up 0.4% at 7,060.31 after figures from the Office for National Statistics showed the unemployment rate unexpectedly ticked lower in the first quarter despite the national lockdown. The unemployment rate nudged down to 4.8% in the three months to March, from 4.9% in February and versus expectations for it to be unchanged.
The ONS said the latest figures suggest the jobs market has been broadly stable in recent months, "with some early signs of recovery".
The number of payrolled workers rose by 97,000 in April, marking the fifth monthly increase in a row, but remains 772,000 below pre-pandemic levels. Since February 2020, the largest falls in payrolled employment have been in the hospitality sector, among those aged under 25 years, and those living in London.
Capital Economics said the slight fall in the unemployment rate suggests that the government’s job furlough scheme is still insulating the labour market from the worst effects of the pandemic.
"And the improving outlook for activity suggests that our forecast that the unemployment rate will rise to a peak of 6.0% by early 2022 may be too pessimistic," said UK economist Thomas Pugh.
Sterling got a boost from the data, trading up 0.5% against the dollar at 1.4206. Neil Wilson, chief market analyst at Markets.com, said: "The three-month calls for a look again at the post-pandemic peak at 1.4250 struck on Feb 24th, but rejection of this area again may signal a double top and slow grind back to the 1.38 region.
"The British labour market looks in decent shape for now; the true test comes with the end of the furlough scheme."
In equity markets, Imperial Brands gained after the tobacco company said it was on track to deliver full-year results in line with guidance as it reported a jump in first-half profit and revenue.
Micro Focus surged as the software group said its first-half performance was set to be ahead of market expectations.
Oxford Biomedica rose as the gene and cell therapy company doubled annual earnings guidance after pharmaceutical giant AstraZeneca ordered more Covid-19 vaccines.
Doorstep lender Provident Financial was on the front foot after an upgrade to ‘outperform’ at KBW.
Food producer and supplier Cranswick was higher after lifting its dividend and reporting a 10.4% rise in annual profits.
4Imprint traded up after it said the first four months of 2021 had shown "very encouraging" progress in the recovery from the effects of the pandemic.
Britvic fizzed higher after the soft drinks maker reinstated its dividend despite posting a decline in first-half profit and revenue, as it hailed an encouraging start to the second half.
On the downside, Vodafone slid after it reported lower-than-expected adjusted core earnings as Covid travel restrictions hit roaming revenues.
Homeserve retreated despite saying that full-year revenues had grown year-on-year, mainly due to a solid performance from its North American unit.
Market Movers
FTSE 100 (UKX) 7,060.31 0.39%
FTSE 250 (MCX) 22,321.04 0.48%
techMARK (TASX) 4,280.73 0.31%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 195.24p 2.93%
BT Group (BT.A) 169.95p 2.26%
JD Sports Fashion (JD.) 915.20p 2.21%
NATWEST GROUP PLC ORD 100P (NWG) 197.60p 2.17%
Evraz (EVR) 689.60p 2.04%
Pershing Square Holdings Ltd NPV (PSH) 2,580.00p 1.98%
Burberry Group (BRBY) 2,127.00p 1.87%
Standard Chartered (STAN) 507.20p 1.81%
Polymetal International (POLY) 1,675.00p 1.76%
Glencore (GLEN) 330.80p 1.74%
FTSE 100 - Fallers
Vodafone Group (VOD) 133.98p -5.45%
DCC (CDI) (DCC) 6,008.00p -1.44%
Hargreaves Lansdown (HL.) 1,676.50p -1.15%
Informa (INF) 543.00p -1.02%
Fresnillo (FRES) 907.00p -0.96%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,115.00p -0.71%
Intertek Group (ITRK) 5,802.00p -0.62%
Whitbread (WTB) 3,067.00p -0.58%
Phoenix Group Holdings (PHNX) 725.40p -0.58%
Reckitt Benckiser Group (RKT) 6,332.00p -0.47%
FTSE 250 - Risers
Oxford Biomedica (OXB) 1,120.00p 11.78%
Provident Financial (PFG) 254.40p 5.12%
Cranswick (CWK) 3,904.00p 5.12%
4Imprint Group (FOUR) 2,410.00p 4.78%
Micro Focus International (MCRO) 492.60p 4.54%
Genuit Group (GEN) 574.00p 3.99%
Games Workshop Group (GAW) 11,140.00p 3.82%
WH Smith (SMWH) 1,705.00p 3.36%
Britvic (BVIC) 949.50p 3.32%
Trainline (TRN) 427.40p 2.74%
FTSE 250 - Fallers
Homeserve (HSV) 1,012.00p -2.41%
JTC (JTC) 653.00p -1.80%
Sanne Group (SNN) 717.00p -1.65%
Brewin Dolphin Holdings (BRW) 338.50p -1.60%
Redde Northgate (REDD) 384.00p -1.54%
SSP Group (SSPG) 304.00p -1.17%
Great Portland Estates (GPOR) 709.00p -1.05%
Shaftesbury (SHB) 617.00p -1.04%
IG Group Holdings (IGG) 856.00p -1.04%
National Express Group (NEX) 288.80p -1.03%