10th Jun 2025 12:03
(Alliance News) - Blue-chips stocks in Europe were mixed on Tuesday, though housebuilders and property stocks supported the FTSE 100, as focus remains on US-China trade talks.
The FTSE 100 index traded up 37.05 points, 0.4%, at 8,869.33. The FTSE 100 is within touching distance of its all-time high of 8,908.82 points, a height it hit in March. Its best-ever closing level is 8,871.31, also achieved in March.
The FTSE 250 was up 142.19 points, 0.7%, at 21,428.10, and the AIM All-Share was up 3.15 points, 0.4%, at 767.04.
The Cboe UK 100 was up 0.5% at 883.31, the Cboe UK 250 added 0.7% at 18,921.78, and the Cboe Small Companies was flat at 16,942.62.
In European equities on Tuesday, the CAC 40 in Paris fell 0.1% and the DAX 40 in Frankfurt was 0.6% lower.
The pound fell to USD1.3503 early Tuesday afternoon from USD1.3556 at the time of the London equities close on Monday, while the euro was largely flat at USD1.1421 from USD1.1419. Versus the yen, the dollar rose to JPY144.61 from JPY144.42.
The UK unemployment rate rose slightly in the three months to April, as expected, while pay growth was more moderate than forecast, according to numbers on Tuesday.
The Office for National Statistics said the UK unemployment rate increased to 4.6% in the period from February to April, from 4.5% in the first three months of 2025. The last time the jobless rate was higher was in the period from April to June 2021, at 4.7%, according to the ONS.
The jobless rate was in line with FXStreet-cited consensus.
The ONS said annual growth in average earnings was 5.2% for regular earnings, which exclude bonuses, and 5.3% for total earnings, which factor in bonuses.
However, regular earnings growth of 5.4% was expected, and total earnings growth of 5.5% was predicted, according to FXStreet.
Regular earnings growth eased from 5.5% in the three months to March, and total earnings growth ebbed from 5.6%.
Lloyds Bank analysts commented: "That is helpful for the BoE when it comes to assessing price risks, but the flip side of that is it appears to be being generated by a slowing labour market – the flip side of those regulated pay and NI tax changes."
Interest rate sensitive stocks in London rose. Industrial property investor Segro added 2.7%, while commercial property investor Land Securities climbed 1.6%.
Housebuilders rose in London, with Bellway's 6.7% rise leading the charge. Bellway said it is on track for "strong growth in volume output and profits" in its financial year, and it predicted average selling prices will be above previous guidance.
The housebuilder said it saw "robust" trading through the spring selling period.
"Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26," Chief Executive Jason Honeyman said.
Volume output for the year to July 31 is now expected between 8,600 and 8,700 homes, a rise from 7,654 home in the prior financial year. In its March interim results, it predicted output of at least 8,500 homes.
The overall average selling price is now expected to be around GBP315,000, up from its previous guidance of GBP310,000 and a rise from GBP307,909 last year. It put the guidance hike to "changes in product mix".
"The group is now fully sold for the current financial year and if market conditions remain stable, Bellway remains well-positioned to deliver cumulative volume growth of 20% in the two years to 31 July 2026," it added
Rolls-Royce added 2.4%. Great British Nuclear said it has chosen a consortium led by Rolls-Royce as the preferred bidder to partner in the development of small modular reactors in the UK.
Rolls-Royce Chief Executive Tufan Erginbilgic called it a "very significant milestone for our business and Rolls-Royce SMR".
Hochschild slumped 19%. The gold and silver miner expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project.
Hochschild said it has suffered "contractor performance issues", alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years.
It is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining "will continue as planned".
In New York, the Dow Jones Industrial Average is called down 0.1%, but the S&P 500 and Nasdaq Composite up 0.1%.
Negotiations between US and Chinese officials in London will stretch into a second day, a source told AFP on Monday.
Chinese Vice Premier He Lifeng was again heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are leading the US delegation.
On Monday, Treasury Secretary Bessent said they had a "good meeting" and Commerce Secretary Lutnick called the talks "fruitful".
A barrel of Brent oil rose to USD67.37 early Tuesday afternoon from USD66.88 late Monday. Gold traded at USD3,335.19 an ounce, rising from USD3,329.84.
By Eric Cunha, Alliance News news editor
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