London open: Stocks rise as investors digest jobs data

At 0840 BST, the FTSE 100 was up 0.3% at 8,231.78.

Figures released earlier by the Office for National Statistics showed the unemployment rate fell unexpectedly in June.

The unemployment rate declined to 4.2% from 4.4% in May, coming in below expectations for a reading of 4.5%.

The data also showed that growth in average earnings excluding bonuses fell to 5.4% from 5.8% in May and versus expectations of 4.6%. This marked the slowest pace of growth since May to July 2022.

Including bonuses, average earnings grew 4.5% in June, down from 5.7% and below expectations of 4.6%.

Richard Hunter, head of markets at Interactive Investor, said the drop in average earnings was "promising news in the battle against inflation".

He added: "The numbers go some way in justifying the Bank of England’s recent decision to cut interest rates given a relatively stable economy, although the timing and amount of the next cut is up for debate, swinging from a possible November reduction to nothing further this year at all."

In equity markets, Just Group surged as it posted a 44% jump in underlying operating profit for the first half to £249m, which was ahead of consensus expectations. It also said it now expects to "substantially exceed" previous 2024 guidance of doubling 2021's £211m operating profit in three years.

Specialty chemicals firm Synthomer also rose sharply after interim results.

Bridgepoint rallied after an upgrade to ‘overweight’ from ‘neutral’ at JPMorgan. "The current low circa 11x 2026E price-to-earnings is an attractive entry point, with the shares offering upside both from earnings growth and rerating potential," JPM said in a research note.

On the downside, Flutter Entertainment slumped ahead of second-quarter results later in the day.

Dowlais lost ground as the GKN Automotive owner said it was considering a potential sale of its Powder Metallurgy business and that it now expects a decline in full-year revenue.

Market Movers

FTSE 100 (UKX) 8,231.78 0.26%
FTSE 250 (MCX) 20,715.97 0.19%
techMARK (TASX) 4,802.93 -0.25%

FTSE 100 - Risers

Standard Chartered (STAN) 730.80p 1.22%
JD Sports Fashion (JD.) 121.80p 1.20%
Rentokil Initial (RTO) 474.60p 1.19%
Melrose Industries (MRO) 491.90p 1.07%
Mondi (MNDI) 1,437.50p 1.02%
Sainsbury (J) (SBRY) 272.20p 0.96%
Ashtead Group (AHT) 5,198.00p 0.89%
Barratt Developments (BDEV) 529.00p 0.84%
Hikma Pharmaceuticals (HIK) 2,018.00p 0.80%
Experian (EXPN) 3,552.00p 0.79%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 14,105.00p -3.95%
Marks & Spencer Group (MKS) 317.40p -1.79%
Antofagasta (ANTO) 1,862.50p -0.90%
Spirax Group (SPX) 7,660.00p -0.71%
Rio Tinto (RIO) 4,914.50p -0.56%
Smurfit Westrock (DI) (SWR) 3,045.00p -0.43%
Glencore (GLEN) 408.55p -0.41%
Anglo American (AAL) 2,223.50p -0.40%
Vodafone Group (VOD) 74.14p -0.40%
Frasers Group (FRAS) 835.50p -0.36%

FTSE 250 - Risers

Just Group (JUST) 130.20p 10.90%
Bridgepoint Group (Reg S) (BPT) 285.80p 3.93%
Ocado Group (OCDO) 389.40p 3.37%
Volution Group (FAN) 530.00p 3.11%
TP Icap Group (TCAP) 239.00p 2.36%
Great Portland Estates (GPE) 348.00p 2.35%
Grafton Group Ut (CDI) (GFTU) 1,019.80p 1.37%
Polar Capital Technology Trust (PCT) 3,015.00p 1.34%
Baltic Classifieds Group (BCG) 265.50p 1.34%
Aston Martin Lagonda Global Holdings (AML) 138.00p 1.25%

FTSE 250 - Fallers

Discoverie Group (DSCV) 597.00p -4.78%
Ninety One (N91) 157.20p -4.73%
Genuit Group (GEN) 444.00p -4.52%
W.A.G Payment Solutions (WPS) 61.80p -4.04%
Target Healthcare Reit Ltd (THRL) 79.00p -3.78%
Energean (ENOG) 902.00p -3.58%
AJ Bell (AJB) 425.00p -1.73%
PZ Cussons (PZC) 101.00p -1.56%
Pantheon International (PIN) 303.00p -1.46%
Premier Foods (PFD) 166.60p -1.42%