10th Jun 2025 09:01
(Alliance News) - The FTSE 100 outperformed as European stocks opened mixed on Tuesday, while the pound struggled in the wake of a softer UK labour market report.
The FTSE 100 index opened up 37.88 points, 0.4%, at 8,870.16. The FTSE 250 was up 63.76 points, 0.3%, at 21,349.67, and the AIM All-Share was down 0.76 of a point, 0.1%, at 763.13.
The Cboe UK 100 was up 0.5% at 883.36, the Cboe UK 250 added 0.4% at 18,860.56, and the Cboe Small Companies was flat at 16,945.55.
In European equities on Tuesday, both the CAC 40 in Paris and the DAX 40 in Frankfurt were 0.1% lower.
The pound fell to USD1.3463 early Tuesday, from USD1.3556 at the time of the London equities close on Monday, while the euro was lower at USD1.1393 from USD1.1419. Versus the yen, the dollar rose to JPY144.76 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%.
XTB analyst Kathleen Brooks commented: "The latest UK labour-market update showed a softening in the job market last month and a drop in wage growth, most notably for private-sector workers. The unemployment rate rose a notch and the ONS reported that firms may not be recruiting new workers or replacing workers who have left. Overall, this is a grim labour market survey and if this trend continues, it could spell worrying times for the UK economy."
The yield on the US 10-year Treasury was quoted at 4.45% early Tuesday UK time, narrowing from 4.49% at the time of the closing bell on the London Stock Exchange on Monday. The 30-year yield narrowed to 4.92% from 4.96%.
Key trade talks between US and Chinese officials in London will stretch into a second day, a source told AFP Monday, with both sides seeking to shore up a shaky tariff truce further strained by export curbs.
The gathering of key officials from the world's two biggest economies began Monday in the historic Lancaster House, run by the UK Foreign Office, following a first round of talks in Geneva last month.
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.
In New York on Monday, the Dow Jones Industrial Average ended slightly lower. The S&P 500 edged up 0.1%, while the Nasdaq Composite climbed 0.3%.
In Tokyo on Tuesday, the Nikkei 225 was 0.3% higher. In China, the Shanghai Composite was down 0.74%, falling into the red in afternoon trade despite spending the morning in the green. It was a similar story for the Hang Seng in Hong Kong which was down 0.3%. Financial markets in Sydney re-opened on Tuesday after a holiday on Monday. The S&P/ASX 200 ended 0.8% higher.
A barrel of Brent oil rose to USD66.98 early Tuesday from USD66.88 late Monday. Gold traded at USD3,328.79 an ounce, declining slightly from USD3,329.84.
In London, housebuilders were among the stand out performers. Bellway rose 4.9%. 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.
On the FTSE 100, Persimmon and Barratt rose 3.5% and 3.0% in a positive read-across, the best large-cap performers.
Aberdeen added 7.1% after JPMorgan lifted the stock to 'overweight' and placed it on 'positive catalyst watch'.
Hochschild slumped 19%. It expects a "significant reduction" to guidance for its Mara Rosa mine in Brazil.
"The company has previously disclosed that operations at Mara Rosa have been adversely affected by heavier-than-usual seasonal rainfall over the past few months as well as contractor performance issues. These conditions have limited access to ore, particularly the higher-grade zones within the pit, and have further compounded ongoing challenges with the filtering processes. As a result, efforts to recover from delays in mine waste removal carried over from the previous year have been further prolonged," the gold miner said.
Elsewhere, Revolution Beauty added 5.9%. Frasers Group confirmed its interest in Revolution Beauty, and the Sports Direct owner said that any offer it makes for the cosmetics product retailer will be all cash. Frasers, however, said there is no certainty that a bid will be made.
Revolution Beauty confirmed Monday that Sports Direct owner Frasers Group is one of a number of parties eyeing a bid for the company. It said Frasers is "one of a number of parties conducting due diligence" as part of the formal sale process announced in May.
By Eric Cunha, Alliance News news editor
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