FTSE 100 LIVE: Stocks higher as UK unemployment hits four-year high and wage growth slows
According to the Office for National Statistics, Britain's unemployment rate rose in the March to May quarter, to 4.7%, up from 4.5% in the December-February quarter, and higher than economists had expected.
The jobs report also revealed that the estimated number of vacancies fell by 56,000 on the quarter, to 727,000, in April to June 2025, as companies continued to cut back on hiring.
Wages grew at their slowest pace in three years in May, with average regular pay growth excluding bonuses falling to 5%, which was the weakest since June 2022.
In the private sector, regular pay excluding bonuses dropped to 4.9%, which was the weakest since February 2022.
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ONS director of economic statistics Liz McKeown said: 'The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated.
'Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards. The number of job vacancies is still falling and has now been dropping continuously for three years.'
London's benchmark index (^FTSE) was 0.4% higher in early trade.
Germany's DAX (^GDAXI) rose 1.2% and the CAC (^FCHI) in Paris headed more than 1% into the green.
The pan-European STOXX 600 (^STOXX) was up 0.8%.
Wall Street was set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green.
The pound was 0.2% down against the US dollar (GBPUSD=X) at 1.3390 amid expectations that the jobs data will lead the Bank of England to cut interest rates next month.
Follow along for live updates throughout the day:
UK unemployment hits four-year high
UK unemployment hitting a four-year high. The number of people on payrolls also dropped to the lowest since September 2023 in the wake of Rachel Reeves's tax raid on businesses.
According to the Office for National Statistics, Britain's unemployment rate rose in the March to May quarter, to 4.7%, up from 4.5% in the December-February quarter, and higher than economists had expected.
ONS director of economic statistics Liz McKeown said:
Asia and US overnight
Stocks in Asia were mostly higher overnight, with the Nikkei (^N225) rising 0.6% on the day in Japan, while the Hang Seng (^HSI) fell 0.15% in Hong Kong. The Shanghai Composite (000001.SS) was 0.4% up by the end of the session.
In South Korea, the Kospi (^KS11) added 0.2% on the day.
Meanwhile, the Australian dollar is the weakest G10 currency this morning, having fallen 0.64% against the US dollar.
Across the pond on Wall Street stocks were higher at the end of a choppy session the day before as beaten-down regional banking shares advanced on a quiet day for markets.
On Wall Street, the Dow Jones Industrial Average (^DJI) finished 0.5% higher at 44,254.78, while the S&P 500 (^GSPC) advanced 0.3% to 6,263.70, and the Nasdaq (^IXIC) rose a similar percentage to 20,730.49.
This was despite some market anxiety lingering over the uncertain tenure of Federal Reserve chief Jerome Powell.
The initial news that Donald Trump was likely to fire Powell sent stocks and the dollar sliding. But Trump was quick to deny the reports, restoring some calm to volatile markets, but he kept the door open to the possibility, and renewed his criticism of the central bank chief for not lowering interest rates.
TSMC, the world's main producer of advanced AI chips, is expected to post a jump in second-quarter profit to record levels, although US tariffs and a strong Taiwan dollar could impact its outlook. Netflix also reports results later.
In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.453% from 4.489% late on Tuesday.
Coming up
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
For the day ahead we have data releases including US retail sales for June, the weekly initial jobless claims, the NAHB's housing market index for July, and UK unemployment for May.
Central bank speakers include the Fed's Kugler, Daly, Cook and Waller, along with the ECB's Villeroy. Finally, earnings releases include Netflix, General Electric, PepsiCo, and Abbott Laboratories.
Here's a snapshot of what's on the agenda:
7am: Trading updates: EasyJet, SSE, Wise, Big Yellow, Barratt Redrow, Ocado
7am: UK labour market report
10am: Eurozone inflation report for June
1.30pm: US retail sales for June
1.30pm: US weekly jobless data
1.30pm: The 'Philly Fed' business conditions report
3pm: US Business InventoriesUK unemployment hits four-year high
UK unemployment hitting a four-year high. The number of people on payrolls also dropped to the lowest since September 2023 in the wake of Rachel Reeves's tax raid on businesses.
According to the Office for National Statistics, Britain's unemployment rate rose in the March to May quarter, to 4.7%, up from 4.5% in the December-February quarter, and higher than economists had expected.
ONS director of economic statistics Liz McKeown said:
UK unemployment hitting a four-year high. The number of people on payrolls also dropped to the lowest since September 2023 in the wake of Rachel Reeves's tax raid on businesses.
According to the Office for National Statistics, Britain's unemployment rate rose in the March to May quarter, to 4.7%, up from 4.5% in the December-February quarter, and higher than economists had expected.
ONS director of economic statistics Liz McKeown said:
Asia and US overnight
Stocks in Asia were mostly higher overnight, with the Nikkei (^N225) rising 0.6% on the day in Japan, while the Hang Seng (^HSI) fell 0.15% in Hong Kong. The Shanghai Composite (000001.SS) was 0.4% up by the end of the session.
In South Korea, the Kospi (^KS11) added 0.2% on the day.
Meanwhile, the Australian dollar is the weakest G10 currency this morning, having fallen 0.64% against the US dollar.
Across the pond on Wall Street stocks were higher at the end of a choppy session the day before as beaten-down regional banking shares advanced on a quiet day for markets.
On Wall Street, the Dow Jones Industrial Average (^DJI) finished 0.5% higher at 44,254.78, while the S&P 500 (^GSPC) advanced 0.3% to 6,263.70, and the Nasdaq (^IXIC) rose a similar percentage to 20,730.49.
This was despite some market anxiety lingering over the uncertain tenure of Federal Reserve chief Jerome Powell.
The initial news that Donald Trump was likely to fire Powell sent stocks and the dollar sliding. But Trump was quick to deny the reports, restoring some calm to volatile markets, but he kept the door open to the possibility, and renewed his criticism of the central bank chief for not lowering interest rates.
TSMC, the world's main producer of advanced AI chips, is expected to post a jump in second-quarter profit to record levels, although US tariffs and a strong Taiwan dollar could impact its outlook. Netflix also reports results later.
In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.453% from 4.489% late on Tuesday.
Stocks in Asia were mostly higher overnight, with the Nikkei (^N225) rising 0.6% on the day in Japan, while the Hang Seng (^HSI) fell 0.15% in Hong Kong. The Shanghai Composite (000001.SS) was 0.4% up by the end of the session.
In South Korea, the Kospi (^KS11) added 0.2% on the day.
Meanwhile, the Australian dollar is the weakest G10 currency this morning, having fallen 0.64% against the US dollar.
Across the pond on Wall Street stocks were higher at the end of a choppy session the day before as beaten-down regional banking shares advanced on a quiet day for markets.
On Wall Street, the Dow Jones Industrial Average (^DJI) finished 0.5% higher at 44,254.78, while the S&P 500 (^GSPC) advanced 0.3% to 6,263.70, and the Nasdaq (^IXIC) rose a similar percentage to 20,730.49.
This was despite some market anxiety lingering over the uncertain tenure of Federal Reserve chief Jerome Powell.
The initial news that Donald Trump was likely to fire Powell sent stocks and the dollar sliding. But Trump was quick to deny the reports, restoring some calm to volatile markets, but he kept the door open to the possibility, and renewed his criticism of the central bank chief for not lowering interest rates.
TSMC, the world's main producer of advanced AI chips, is expected to post a jump in second-quarter profit to record levels, although US tariffs and a strong Taiwan dollar could impact its outlook. Netflix also reports results later.
In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.453% from 4.489% late on Tuesday.
Coming up
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
For the day ahead we have data releases including US retail sales for June, the weekly initial jobless claims, the NAHB's housing market index for July, and UK unemployment for May.
Central bank speakers include the Fed's Kugler, Daly, Cook and Waller, along with the ECB's Villeroy. Finally, earnings releases include Netflix, General Electric, PepsiCo, and Abbott Laboratories.
Here's a snapshot of what's on the agenda:
7am: Trading updates: EasyJet, SSE, Wise, Big Yellow, Barratt Redrow, Ocado
7am: UK labour market report
10am: Eurozone inflation report for June
1.30pm: US retail sales for June
1.30pm: US weekly jobless data
1.30pm: The 'Philly Fed' business conditions report
3pm: US Business Inventories
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
For the day ahead we have data releases including US retail sales for June, the weekly initial jobless claims, the NAHB's housing market index for July, and UK unemployment for May.
Central bank speakers include the Fed's Kugler, Daly, Cook and Waller, along with the ECB's Villeroy. Finally, earnings releases include Netflix, General Electric, PepsiCo, and Abbott Laboratories.
Here's a snapshot of what's on the agenda:
7am: Trading updates: EasyJet, SSE, Wise, Big Yellow, Barratt Redrow, Ocado
7am: UK labour market report
10am: Eurozone inflation report for June
1.30pm: US retail sales for June
1.30pm: US weekly jobless data
1.30pm: The 'Philly Fed' business conditions report
3pm: US Business Inventories
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