London open: Stocks edge down after jobs data, ahead of US inflation

London stocks edged lower in early trade on Tuesday as investors mulled UK jobs data and eyed the latest US inflation report.

At 0845 GMT, the FTSE 100 was down 0.2% at 7,414.42.

Figures released earlier by the Office for National Statistics showed that wage growth eased in the three months to September, but earnings growth outstripped inflation, while the unemployment rate was unchanged.

Average wage growth including bonuses fell to 7.9% from an upwardly-revised 8.2.% the month before. This compares to inflation of 6.7%. Economists were expecting wage growth including bonuses to fall to 7.4%.

Excluding bonuses, wage growth eased to 7.7% in the three months to September, from 7.8%. This was still among the highest annual growth rates since comparable records began in 2001, the ONS said.

Meanwhile, the unemployment rate was steady at 4.2%.

The data also showed that in August to October, the estimated number of vacancies fell by 58,000 on the quarter to 957,000. Vacancies declined in 16 of the 18 industry sectors.

In addition, the number of payrolled employees was estimated to have increased by 33,000 on the September figure, to 30.2m. The data for September was revised from a decrease of 11,000 to an increase of 32,000.

ONS director of economic statistics, Darren Morgan, said: "Our labour market figures show a largely unchanged picture, with the proportions of people who are employed, unemployed or who are neither working nor looking for a job all little changed on the previous quarter.

"The number of job vacancies fell for the 16th straight month. Nevertheless, vacancies still remain well above their pre-pandemic levels.

"With inflation easing in the latest quarter, real pay is now growing at its fastest rate for two years."

Looking ahead to the rest of the day, market participants were awaiting the release of the US consumer price index for October at 1330 GMT.

Tickmill Group said: "The upcoming US consumer price index (CPI) data is anticipated to be a key release for global financial markets, closely observed for insights into the interest rate outlook. Forecasts indicate a decline in annual headline inflation for October, primarily attributed to the recent decrease in oil prices and its ripple effect on gasoline prices.

"The prediction suggests a drop to 3.3% from the 3.7% recorded in September, marking the lowest rate in three months, though not a new low for the year. In contrast, core inflation, which excludes volatile food and energy prices, is expected to remain stable at 4.1%.

"Despite a notable decline earlier in the year, the recent months have seen a slowdown in the improvement of core inflation. This deceleration is particularly evident in service sector inflation, indicating a level of persistence in certain components of the inflationary landscape. The CPI data will be closely scrutinised for its implications on monetary policy and the broader economic environment."

In equity markets, there was another deluge of releases.

Vodafone was on the back foot as it reiterated full-year guidance but reported a 4.3% drop in half-year group revenues and a 44% decline in operating profits.

Tobacco and vaping giant Imperial Brands edged down as it said full-year revenues were flat as lower tobacco volumes were offset by strong growth in next-generation products (NGP).

M&G was knocked lower by a downgrade to ‘sector perform’ from ‘outperform’ at RBC Capital Markets.

On the upside, events organiser Informa surged as it lifted its full-year profit and revenue expectations, hailing continuing strong growth across its portfolio.

Mining and commodities company Glencore was a high riser after saying it was spending $6.9bn to buy a 77% stake in Teck Resources' steelmaking coal business in Canada's Rocky Mountains, Elk Valley Resources (EVR). Miners more generally were in the black, with Anglo American, Antofagasta and Rio Tinto all up.

Oxford Instruments rallied as it posted a jump in first-half profit, revenue and the order book, with "particularly good" growth in Research & Discovery.

Aerospace and defence firm Babcock gained as it backed its full-year expectations, reported a rise in first-half revenue and profit, and reinstated its dividend.

Market Movers

FTSE 100 (UKX) 7,414.42 -0.15%
FTSE 250 (MCX) 17,910.87 -0.02%
techMARK (TASX) 4,062.40 0.00%

FTSE 100 - Risers

Informa (INF) 734.60p 4.64%
Glencore (GLEN) 444.85p 3.35%
DCC (CDI) (DCC) 4,808.00p 3.04%
Convatec Group (CTEC) 214.00p 2.59%
Anglo American (AAL) 2,063.50p 1.58%
IMI (IMI) 1,540.00p 0.98%
Antofagasta (ANTO) 1,304.00p 0.85%
SEGRO (SGRO) 773.20p 0.76%
3i Group (III) 2,051.00p 0.64%
Spirax-Sarco Engineering (SPX) 8,586.00p 0.52%

FTSE 100 - Fallers

Entain (ENT) 867.80p -2.67%
Smith (DS) (SMDS) 290.30p -2.35%
Rolls-Royce Holdings (RR.) 237.00p -1.33%
Pershing Square Holdings Ltd NPV (PSH) 2,998.00p -1.32%
M&G (MNG) 205.10p -1.20%
Flutter Entertainment (CDI) (FLTR) 12,280.00p -1.09%
RS Group (RS1) 707.40p -0.92%
InterContinental Hotels Group (IHG) 5,902.00p -0.91%
Vodafone Group (VOD) 76.71p -0.89%
St James's Place (STJ) 646.40p -0.89%

FTSE 250 - Risers

Oxford Instruments (OXIG) 2,015.00p 4.73%
Ninety One (N91) 176.40p 4.69%
Hilton Food Group (HFG) 700.00p 2.94%
Elementis (ELM) 126.20p 2.94%
Hill and Smith (HILS) 1,798.00p 2.28%
SThree (STEM) 395.50p 2.20%
Babcock International Group (BAB) 416.80p 1.76%
Essentra (ESNT) 159.80p 1.52%
Renishaw (RSW) 3,044.00p 1.40%
Chemring Group (CHG) 299.00p 1.36%

FTSE 250 - Fallers

Bank of Georgia Group (BGEO) 3,335.00p -6.32%
Discoverie Group (DSCV) 625.00p -4.58%
Vesuvius (VSVS) 407.80p -3.59%
JTC (JTC) 681.50p -3.06%
Bakkavor Group (BAKK) 85.00p -2.75%
Rathbones Group (RAT) 1,536.00p -2.54%
Me Group International (MEGP) 139.60p -2.38%
Crest Nicholson Holdings (CRST) 170.30p -2.35%
CLS Holdings (CLI) 89.30p -2.08%
Kainos Group (KNOS) 935.50p -2.04%