London open: Stocks flat as investors mull jobs data

London stocks were flat in early trade on Tuesday as investors mulled the latest UK jobs data and looked ahead to US inflation figures.

At 0830 GMT, the FTSE 100 was steady at 7,382.05.

Data released earlier by the Office for National Statistics showed the unemployment rate ticked higher in September, while real wages continued to grow but lag inflation.

The unemployment rate edged up to 3.6% in the three months to September from 3.5% in August. Analysts had been expecting the rate to remain unchanged.

Meanwhile, regular pay increased 5.7% from a year earlier, up from 5.4% and ahead of expectations for a 5.5% rise.

Taking into account inflation, however, average pay including bonuses fell by 2.6% in the year to July to September. Excluding bonuses, it fell 2.7%.

The figures showed that the number of people in employment declined by 52,000 in the three months to September. This was much higher than consensus expectations for a 25,000 drop.

Darren Morgan, director of economic statistics at the ONS, said: "The proportion of people neither working nor looking for work has risen again.

"Since the onset of the pandemic, this shift has largely been caused by older workers leaving the labour market altogether, but in the most recent quarter the main contribution has actually come from younger groups.

"August and September saw well over half a million working days lost to strikes, the highest two-month total in more than a decade, with the vast majority coming from the transport and communications sectors.

"With real earnings continuing to fall, it’s not surprising that employers we survey are telling us most disputes are about pay."

Ashley Webb, UK economist at Capital Economics, said: "Overall, while today’s release provided some tentative signs that the labour market is turning, the Bank of England will want to see concrete signs of easing wage growth.

"That’s why we think the Bank of England will raise interest rates by 50 basis points in December and eventually to a peak of 5.00%, although the fiscal consolidation set to be announced on Thursday means the risks are on the downside."

Looking ahead to the rest of the day, investors were eyeing the US producer price index for October at 1330 GMT.

In equity markets, BAE Systems was in the black after it held guidance as it said a weaker pound would provide a tailwind for reported annual earnings and sales.

Melrose Industries also gained after saying it was trading in line with expectations for the year, with momentum in the aerospace division improving.

On the downside, Vodafone slumped after the telecoms giant said annual earnings would come in at the lower end of guidance as it battled higher energy costs and inflation.

Imperial Brands was under the cosh after it reported a sharp fall in full-year profits as it took a £463m hit from its exit from Russia.

Land Securities lost ground after saying it swung to a first-half loss, with growth in earnings offset by market yield shift.

Market Movers

FTSE 100 (UKX) 7,382.05 -0.04%
FTSE 250 (MCX) 19,588.93 -0.17%
techMARK (TASX) 4,348.65 -0.45%

FTSE 100 - Risers

Centrica (CNA) 85.00p 1.85%
SSE (SSE) 1,659.50p 1.69%
Antofagasta (ANTO) 1,430.50p 1.27%
BAE Systems (BA.) 734.20p 1.10%
Melrose Industries (MRO) 128.55p 1.06%
F&C Investment Trust (FCIT) 936.00p 0.97%
National Grid (NG.) 1,018.50p 0.94%
Scottish Mortgage Inv Trust (SMT) 816.00p 0.92%
Anglo American (AAL) 3,347.00p 0.84%
Rio Tinto (RIO) 5,442.00p 0.65%

FTSE 100 - Fallers

Vodafone Group (VOD) 99.72p -4.26%
Imperial Brands (IMB) 1,987.50p -2.48%
Ocado Group (OCDO) 907.00p -2.01%
BT Group (BT.A) 122.95p -1.60%
Land Securities Group (LAND) 615.40p -1.35%
Airtel Africa (AAF) 118.00p -0.84%
Harbour Energy (HBR) 339.80p -0.82%
Shell (SHEL) 2,340.00p -0.76%
Admiral Group (ADM) 2,104.00p -0.75%
WPP (WPP) 872.00p -0.75%

FTSE 250 - Risers

Drax Group (DRX) 567.50p 3.65%
HGCapital Trust (HGT) 380.50p 3.12%
Ferrexpo (FXPO) 152.60p 2.69%
Capital & Counties Properties (CAPC) 113.50p 2.53%
Assura (AGR) 57.70p 2.30%
Fidelity China Special Situations (FCSS) 216.00p 1.89%
Hochschild Mining (HOC) 71.05p 1.86%
Essentra (ESNT) 238.50p 1.71%
Syncona Limited NPV (SYNC) 193.00p 1.47%
SDCL Energy Efficiency Income Trust (SEIT) 105.80p 1.34%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 135.20p -5.49%
Crest Nicholson Holdings (CRST) 219.00p -3.10%
Marshalls (MSLH) 292.60p -2.92%
Moonpig Group (MOON) 175.70p -2.55%
Vietnam Enterprise Investments (DI) (VEIL) 511.00p -2.48%
Bankers Inv Trust (BNKR) 101.40p -2.31%
QinetiQ Group (QQ.) 338.00p -2.09%
Abrdn (ABDN) 200.80p -2.00%
IP Group (IPO) 74.00p -1.86%
Bluefield Solar Income Fund Limited (BSIF) 133.00p -1.85%