London open: Stocks rise after UK jobs data
London stocks rose in early trade on Tuesday as investors cheered better-than-expected UK jobs data.
At 0900 BST, the FTSE 100 was up 0.6% at 7,075.64, while sterling was up 0.5% against the dollar at 1.4203.
Figures released earlier by the Office for National Statistics showed the unemployment rate unexpectedly ticked lower in the first quarter despite the national lockdown. The unemployment rate nudged down to 4.8% in the three months to March, from 4.9% in February and versus expectations for it to be unchanged.
The ONS said the latest figures suggest the jobs market has been broadly stable in recent months, "with some early signs of recovery".
The number of payrolled workers rose by 97,000 in April, marking the fifth monthly increase in a row, but remains 772,000 below pre-pandemic levels. Since February 2020, the largest falls in payrolled employment have been in the hospitality sector, among those aged under 25 years, and those living in London.
Capital Economics said the slight fall in the unemployment rate suggests that the government’s job furlough scheme is still insulating the labour market from the worst effects of the pandemic.
"And the improving outlook for activity suggests that our forecast that the unemployment rate will rise to a peak of 6.0% by early 2022 may be too pessimistic," said UK economist Thomas Pugh.
In equity markets, Imperial Brands gained after the tobacco company said it was on track to deliver full-year results in line with guidance as it reported a jump in first-half profit and revenue.
Micro Focus surged as the software group said its first-half performance was set to be ahead of market expectations.
Oxford Biomedica was in the black as the gene and cell therapy company doubled annual earnings guidance after pharmaceutical giant AstraZeneca ordered more Covid-19 vaccines.
London Stock Exchange shares rallied after Morgan Stanley resumed coverage of the stock at ‘overweight’.
4Imprint traded up after it said the first four months of 2021 had shown "very encouraging" progress in the recovery from the effects of the pandemic.
Britvic fizzed higher after the soft drinks maker reinstated its dividend despite posting a decline in first-half profit and revenue, as it hailed an encouraging start to the second half.
On the downside, Vodafone slid after it reported lower-than-expected adjusted core earnings as Covid travel restrictions hit roaming revenues.
Land Securities fell as it said full-year losses had widened as its London-focused office portfolio suffered amid Covid-19 related work-from-home measures.
Market Movers
FTSE 100 (UKX) 7,075.64 0.61%
FTSE 250 (MCX) 22,364.49 0.68%
techMARK (TASX) 4,288.05 0.48%
FTSE 100 - Risers
Fresnillo (FRES) 939.80p 2.62%
NATWEST GROUP PLC ORD 100P (NWG) 197.90p 2.33%
Imperial Brands (IMB) 1,625.00p 2.20%
Pershing Square Holdings Ltd NPV (PSH) 2,585.00p 2.17%
International Consolidated Airlines Group SA (CDI) (IAG) 193.76p 2.15%
Ashtead Group (AHT) 5,078.00p 2.05%
JD Sports Fashion (JD.) 913.40p 2.01%
London Stock Exchange Group (LSEG) 7,318.00p 1.95%
Burberry Group (BRBY) 2,127.00p 1.87%
Anglo American (AAL) 3,357.50p 1.82%
FTSE 100 - Fallers
Vodafone Group (VOD) 131.94p -6.89%
Land Securities Group (LAND) 710.60p -0.62%
Hargreaves Lansdown (HL.) 1,688.00p -0.47%
GlaxoSmithKline (GSK) 1,373.20p -0.46%
Antofagasta (ANTO) 1,694.50p -0.44%
Intertek Group (ITRK) 5,828.00p -0.17%
Experian (EXPN) 2,635.00p -0.04%
SEGRO (SGRO) 999.40p 0.04%
Unilever (ULVR) 4,312.50p 0.05%
Relx plc (REL) 1,850.50p 0.05%
FTSE 250 - Risers
Micro Focus International (MCRO) 517.80p 9.89%
Oxford Biomedica (OXB) 1,076.00p 7.39%
4Imprint Group (FOUR) 2,435.00p 5.87%
Provident Financial (PFG) 254.40p 5.12%
Cranswick (CWK) 3,904.00p 5.12%
Britvic (BVIC) 953.50p 3.75%
Energean (ENOG) 842.50p 3.18%
XP Power Ltd. (DI) (XPP) 4,945.00p 2.70%
FirstGroup (FGP) 82.45p 2.42%
Allianz Technology Trust (ATT) 264.00p 2.33%
FTSE 250 - Fallers
Homeserve (HSV) 1,009.00p -2.70%
JTC (JTC) 655.00p -1.50%
Aston Martin Lagonda Global Holdings (AML) 1,891.50p -1.25%
Capita (CPI) 41.79p -1.21%
CLS Holdings (CLI) 240.50p -1.03%
National Express Group (NEX) 289.60p -0.75%
Signature Aviation (SIG) 394.00p -0.71%
Brewin Dolphin Holdings (BRW) 342.00p -0.58%
Sanne Group (SNN) 725.00p -0.55%
Redde Northgate (REDD) 388.50p -0.38%