AUS
NZ
UK
CA
USA
IND
Summary
- London equities suffered another blow on Tuesday, 20 April
- FTSE 100 collapsed nearly 1 per cent after employment data disturbed investors
- Employed individuals declined by 73,000 to 32.43 million in January 2021
UK shares suffered another blow on Tuesday, 20 April, this time a major one, after the marginal dip recorded on Monday ahead of the macroeconomic data releases. The benchmark FTSE 100 nosedived nearly 1 per cent in the morning deals after the employment data displeased the market participants.
Employment activity renews worry
According to the data released by the Office for National Statistics (ONS), the unemployment rate in February 2021 eased slightly to 4.9 per cent as compared to the previous month’s reading of 5 per cent. This was the second straight month of fall in the rate of unemployment in the United Kingdom. The data indicating a downfall in the rate of unemployment for the second consecutive month doesn’t provide a wholesome view alone as it records a sequential percentage drop.
The number of employed individuals declined by 73,000 to 32.43 million as of January 2021; the quantum of drop in employment levels was relatively low as compared to December’s reduction of 147,000.
Irrespective of the minimal drop in employment on a month-on-month basis, the overall employment level in the UK remained steeply lower, recording the widest annual drop since the three months to July 2009, the year that witnessed the last stage of the global financial crisis.
On a year-on-year basis, the employment levels were down by 643,000 in January 2021. Meanwhile, about 10,100 people came forward to claim the unemployment benefits in the UK in March 2021. The figure was sharply lower than February’s 9-month high reading of 86,600 individuals.
London equities under heat
Subsequent to the macro releases, the headline FTSE 100 recognised a steep fall with the large-cap heavy indices FTSE 350 and FTSE All-Share following suit. The losses in the mid-cap indicator FTSE 250 were capped up to 0.60 per cent.
According to the latest data available with the London Stock Exchange, FTSE 100 shed as much as 0.99 per cent to an intraday bottom of 6,931.01 from the previous close of 7,000.08. The index mostly hovered in the negative territory up until 1130 BST, extending the losses, barring a brief and momentary uptick to 7,001.27.
FTSE 100 (20 April)
(Source: EODHD/Others, Thomson Reuters)
The FTSE 250 index plunged 0.60 per cent to a day’s low of 22,354.99, whereas the FTSE 350 and FTSE All-Share realised a fall of 0.88 and 0.86 per cent, respectively.
