London close: UK stocks outperform on economic data

London stocks outperformed their peers on either side of the Atlantic, as investors mulled an easing in UK wage growth and better-than-expected economic data in the States.

The FTSE 100 was up 0.58% at 7,675.21, while the second-tier index added 0.97% to 17,689.46.

In parallel, the yield on the benchmark 10-year Gilt added three basis points to 4.513%.

Russ Mould, investment director at AJ Bell, said: "Helping to give UK stocks a boost were the latest figures on jobs with a slowdown in wage growth. That in theory reduces the chances of the Bank of England rushing to put up interest rates again."

Data released earlier by the Office for National Statistics showed that growth in basic wages eased a little in August.

Average earnings excluding bonuses rose 7.8% in the three months to August versus a year earlier, down from upwardly-revised 7.9% growth the month before. Economists were expecting growth to be unchanged at 7.8%.

Growth in the three months to July was the highest since record began in 2001.

Total earnings including bonuses eased to 8.1% growth from 8.5%, versus consensus expectations of 8.3%.

In the U.S., the Department of Commerce reported a 0.7% month-on-month rise in retail sales for the month of September (consensus: 0.3%).

Industrial production figures for that same month also beat economists' forecasts, revealing a 0.3% rise (consensus: -0.1%).

In UK equity markets, engine maker Rolls-Royce was up but off its highs, after saying it plans to cut up to 2,500 jobs worldwide as part of a plan to streamline the organisation. The company, which currently employs 42,000 worldwide, said the engineering technology & safety segments will come together as a single team across the group, responsible for product safety, engineering standards, process, methods and tools.

Melrose edged lowerr despite lifting its adjusted operating margin outlook for 2023.

Price comparison website Moneysupermarket.com surged as it said it saw growth accelerate in the third quarter due to high levels of switching in car and home insurance, offsetting the impact of higher interest rates on loan and funding activities.

St James’ Place slipped after confirming it was overhauling its fee structure.

Bellway also turned higher after earlier losses, having reported an 18.1% fall in full-year underlying full-year pre-tax profit amid a "challenging" market and warned it expects to build far fewer houses in 2024.

Jupiter Fund Management tumbled as it announced a new charging structure and posted a decline in third-quarter assets under management as macroeconomic uncertainty continued to dent demand for risk assets, particularly with retail clients.

Market Movers

FTSE 100 (UKX) 7,675.21 0.58%
FTSE 250 (MCX) 17,689.46 0.97%
techMARK (TASX) 4,175.34 0.40%

FTSE 100 - Risers

AstraZeneca (AZN) 11,270.00p 2.72%
JD Sports Fashion (JD.) 136.75p 2.17%
Taylor Wimpey (TW.) 111.75p 2.15%
Barratt Developments (BDEV) 423.90p 2.12%
InterContinental Hotels Group (IHG) 6,136.00p 1.83%
Beazley (BEZ) 532.50p 1.72%
NATWEST GROUP (NWG) 231.80p 1.58%
Haleon (HLN) 338.70p 1.50%
B&M European Value Retail S.A. (DI) (BME) 580.80p 1.33%
Marks & Spencer Group (MKS) 222.20p 1.32%

FTSE 100 - Fallers

Hargreaves Lansdown (HL.) 744.00p -2.34%
BT Group (BT.A) 117.35p -2.17%
RS Group (RS1) 712.20p -1.63%
Prudential (PRU) 888.20p -1.16%
Melrose Industries (MRO) 473.00p -1.15%
Antofagasta (ANTO) 1,394.50p -1.03%
Smith (DS) (SMDS) 279.20p -0.96%
Spirax-Sarco Engineering (SPX) 8,398.00p -0.83%
Aviva (AV.) 408.90p -0.78%
Phoenix Group Holdings (PHNX) 465.10p -0.64%

FTSE 250 - Risers

Digital 9 Infrastructure NPV (DGI9) 40.20p 17.72%
Moneysupermarket.com Group (MONY) 268.20p 9.47%
Just Group (JUST) 74.80p 6.86%
Baltic Classifieds Group (BCG) 199.40p 5.50%
TUI AG Reg Shs (DI) (TUI) 448.00p 3.99%
888 Holdings (DI) (888) 85.75p 3.94%
Persimmon (PSN) 1,069.50p 3.63%
Pennon Group (PNN) 705.00p 3.37%
Bellway (BWY) 2,234.00p 3.33%
Supermarket Income Reit (SUPR) 74.90p 3.17%

FTSE 250 - Fallers

Jupiter Fund Management (JUP) 78.75p -9.79%
Liontrust Asset Management (LIO) 551.50p -3.58%
Marshalls (MSLH) 198.00p -3.23%
Essentra (ESNT) 163.00p -2.86%
Quilter (QLT) 84.10p -2.72%
Dr. Martens (DOCS) 118.90p -2.54%
Rathbones Group (RAT) 1,568.00p -1.88%
Auction Technology Group (ATG) 559.00p -1.58%
Abrdn (ABDN) 161.60p -1.58%
Spirent Communications (SPT) 94.20p -1.57%