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London’s FTSE 100 closed 1.26% higher on Tuesday at 9,910.39 points and reached another record high of 9,912.85 points during the session as UK unemployment reached an over four-year high, rekindling hopes for a rate cut in December.
Britain’s unemployment rate came in at 5% in the three months to September, the highest since early 2021, up from 4.8% in the prior three-month period, according to data from the Office for National Statistics. The consensus estimate for the period was 4.9%.
Meanwhile, average weekly pay, including bonuses, rose 4.8% year over year in the quarter to September, against a 5% jump in the prior three-month period and the consensus estimate of a 4.9% increase.
“The UK labor market weakened in September and indicators available for October suggest that this trend will likely continue,” said Berenberg. “By itself, today’s data support those who expect the Bank of England (BoE) to cut bank rate again on 18 December. However, in our view, the influence on the ultimate decision should be relatively weak – the BoE will receive much more important information (including on the government budget on 26 November and on inflation) before it needs to make its call.”
In corporate news, Vodafone Group (VOD.L) now expects to hit the upper end of its guidance ranges for fiscal 2026 and grow its full-year dividend per share by 2.5%, driving shares up 8.32%, making it the biggest gainer on the index. The telecommunications giant also reported a lower profit but higher revenue for the six months ended Sept. 30.
“Vodafone’s H1 results are reassuring,” according to AlphaValue/Baader Europe. “Germany is on a clear improvement path, and emerging markets are experiencing robust growth. In the UK, Vodafone has finalized its merger with Three, creating significant opportunities for EBITDA savings.”
DCC (DCC.L) was 2.51% higher even after turning to an attributable loss of 183.3 million pounds sterling for the fiscal first half while its revenue slipped.
“We continue to expect good profit growth for the full year in line with market expectations, demonstrating our resilient business model,” said Donal Murphy, the sales, marketing and support services group’s chief executive. “We are excited about our growth opportunities as a simpler, stronger DCC Energy. We’re on track to deliver our 2030 ambition.”