U.K. stocks advanced on Thursday as data showed U.K. wage growth softened in the three months to May period, raising hopes of interest rate cuts ahead of the Bank of England’s rate decision next month.
Wage growth slipped below 6 percent for the first time in almost two years in a sign that the labor market is cooling.
Annual pay growth, excluding bonuses, averaged 5.7 percent between March and May, down from 5.9 percent previously – according to figures from the Office for National Statistics.
The unemployment rate came in at 4.4 percent in March to May period, unchanged from the preceding three months, matching economists’ forecasts.
Payroll employment increased 16,000 from the previous month to 30.4 million in June. In the second quarter, the number of vacancies decreased by 30,000 sequentially to 889,000.
Although the wage data is encouraging, Capital Economics’ economist Ashley Webb said the timing of the first interest rate cut will be in September instead of August. Still, it is a close call, he noted.
The benchmark FTSE 100 was up 67 points, or 0.8 percent, at 8,254 after edging up 0.3 percent on Wednesday.
Energy stocks tracked oil prices higher, with BP rising 1.5 percent and Shell adding 1.3 percent.
3i Group gained 1.4 percent after the private equity and infrastructure investment firm said it had an “encouraging start” to the new financial year.
Frasers Group surged nearly 9 percent. The fashion and retail giant released targets for its current fiscal year above market forecasts.
FTSE 100 Climbs As Wage Growth Slows
2024-07-18 09:18:17
