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Stock prices in London were higher on Tuesday morning as hopes were lifted that the Bank of England could announce an interest rate cut on December 18, as wage growth eased while the unemployment rate in the UK hit 5.0% for the first time since early 2021. The FTSE 100 index opened up 94.38 points, 1.0%, at 9,881.92. The FTSE 250 was up 140.28 points, 0.6%, at 22,108.55, and the AIM All-Share was up 3.15 points, 0.4%, at 760.69. The Cboe UK 100 was up 0.9% at 985.70, the Cboe UK 250 was up 0.5% at 19,118.88, and the Cboe Small Companies was down 0.1% at 17,943.12. In Europe, the CAC 40 in Paris gained 0.6%, while Frankfurt’s DAX 40 inched up 0.1%. The UK unemployment rate rose to 5.0% in the three months to September, its highest level since early 2021, the Office for National Statistics said Tuesday. The rate was up from 4.8% in the prior quarter and 4.2% a year earlier, signalling further labour market weakness. The data could strengthen expectations for a Bank of England rate cut in December, as cooling employment and wage growth suggest easing inflationary pressure. ‘This morning’s UK jobs numbers came in on the soft side,’ analysts at ING said. ‘They’re not screamingly dovish, but they support the ongoing repricing of BoE rate expectations.’ The ONS reported that payrolled employment fell by 117,000, or 0.4%, between September 2024 and September 2025, and by 32,000 between August and September. Early estimates for October show a larger annual drop of 180,000, bringing total payrolled employment to 30.3 million. Vacancies were broadly steady, rising just 0.2% to 723,000 in the three months to October, following 39 consecutive quarterly declines. Wage growth eased slightly but continued to outpace inflation. Regular pay, excluding bonuses, rose 4.6% annually in the three months to September, down from 4.7%, while total pay, including bonuses, increased 4.8%, slowing from 5.0%. Cooling wage growth will fuel hopes the Bank of England will cut rates in December. The pound weakened following the data, as investors bet on an earlier rate cut. Sterling was quoted at $1.3123 early Tuesday in London, down from $1.3160 late Monday. The euro stood at $1.1555, down slightly from $1.1568, while the dollar traded at JP¥154.38, up from JP¥153.97. Vodafone topped the FTSE 100, rising 6.4% after reporting stronger interim results and introducing a new progressive dividend policy. For the six months to September 30, revenue rose 7.3% to €19.61 billion from €18.28 billion a year earlier, while pretax profit was broadly flat at €2.11 billion. Adjusted EbitdaaL increased 5.9% to €5.73 billion, driven by growth in the UK, Turkey, and Africa, alongside a return to top-line expansion in Germany. Vodafone said it expects results at the upper end of its financial 2026 guidance, forecasting a 2.5% dividend increase for the year. It declared an interim dividend of 2.25 euro cents per share and launched a €500 million share buyback programme running until February 2026. Chief Executive Margherita Della Valle said the group was seeing ‘broad-based momentum’ across key markets. At the other end of the FTSE 100, Croda International fell 3.8% after Jefferies cut its rating to ’hold’ from ’buy’ and set a price target of 3,000 pence. Goldman Sachs also lowered its price target to 2,300 pence from 2,400 pence while maintaining a ’sell’ rating. Grocery chains also declined after industry data showed slower sales growth. Tesco lost 2.4% and Sainsbury’s dropped 2.0% after Worldpanel by Numerator reported that UK grocery price inflation eased to 4.7% in the 12 weeks to November 2, down from 5.3% in September. UK grocery sales rose 4.0% year-on-year to £35.26 billion, while take-home sales in the latest four weeks grew 3.2%. Tesco extended its lead with a 5.9% sales rise and market share up to 28.2% from 27.7%. Sainsbury’s gained share to 15.7% from 15.5% after 5.2% sales growth. Ocado Group bucked the sector trend, up 2.2% after posting the strongest growth, with sales up 15.9% year-on-year and market share rising to 2.1% from 1.9%. It marked Ocado’s fastest rate of growth since April 2021 and the third consecutive month as the UK’s fastest-growing grocer. On the FTSE 250, Hilton Food Group plunged 22% after warning that the ongoing US government shutdown had delayed approval of its new Greek salmon facility. The company cited persistent cost pressures from US tariffs and softer consumer demand, particularly in red meat and convenience foods. Hilton forecast adjusted pretax profit of £72 million to £75 million for 2025, supported by a seasonal uplift in the fourth quarter, but cautioned that 2026 profit growth would be ‘difficult.’ By contrast, 4imprint Holdings soared 19% after saying it expects pretax profit of at least $142 million for 2025, above the upper end of forecasts. Revenue is seen at least $1.32 billion, near the top of guidance. The company said trading remained ‘resilient,’ with gross margins around 33%. Among smaller companies, Amazing AI tumbled 46% after announcing plans to spin off 80% of its Mauritius-based subsidiary, Amazing AI Services Ltd, to shareholders. The fintech will retain a 19% passive stake and focus on its online lending business. The spin-off, effective November 28, will grant investors direct exposure to the digital assets sector, with Amazing AI Services planning to list on the Mauritius Stock Exchange. In Asia, the Nikkei 225 in Tokyo closed down 0.1%, the Shanghai Composite fell 0.4%, and the Hang Seng in Hong Kong rose 0.2%. Sydney’s S&P/ASX 200 ended 0.2% lower. In Japan, SoftBank printed strong interim earnings owing to investment gains, as it also unveiled plans for a four-for-one share split as it looks to expand its shareholder base. In Japan, SoftBank Group more than doubled quarterly profit, posting JP¥2.50 trillion, around $16.2 billion, in net income for the second quarter to September 30, up from JP¥1.18 trillion a year earlier. The gain was driven by a 64% jump in investment returns. It also announced a four-for-one share split to broaden its investor base. In New York on Monday, stocks rallied on hopes of an end to largest-ever the US government shutdown. The Dow Jones Industrial Average rose 0.8%, the S&P 500 climbed 1.5%, and the Nasdaq Composite jumped 2.3%. The Senate approved a compromise funding bill in a 60-40 vote, sending it to the House of Representatives for a possible Wednesday vote before reaching President Donald Trump’s desk. The yield on the US 10-year Treasury was quoted at 4.12%, widening from 4.11%. The yield on the US 30-year Treasury was quoted at 4.71%, widening from 4.70%. Brent oil traded at $64.00 a barrel early Tuesday in London, up from $63.45 late Monday. Gold rose to $4,141.20 an ounce from $4,091.42. Still to come on Tuesday’s economic calendar are the eurozone and German ZEW economic sentiment surveys. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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