FTSE 100 struggles to regain morning peak even as unemployment rate falls

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FTSE 100 struggles to regain morning peak even as unemployment rate falls

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 FTSE 100 struggles to regain morning peak even as unemployment rate falls
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Summary

  • UK shares hovered in green after rising sharply in morning deals
  • The UK unemployment rate dipped to 4.8 per cent in three months to March
  • FTSE 100 shed 0.76 per cent, from the intraday peak of 7,102.57 

UK shares hovered in the positive region after rising sharply in the morning deals on Tuesday, 18 May, reacting to the major macroeconomic releases by the Office for National Statistics (ONS).

The headline FTSE 100 struggled to regain the intraday peak achieved in the earning morning session even after the unemployment rate in the United Kingdom slipped marginally.

According to the macroeconomic data released by the ONS, the unemployment rate in the UK decreased slightly to 4.8 per cent in the three months to March 2021. The marginally dip in the rate of unemployment has been recognised irrespective of the third national lockdown in place, mostly during the January to March quarter. The pandemic-induced curbs were partially lifted in the second half of March.

Surprisingly, the number of individuals on payrolls surged by 97,000, while the number of people working across the United Kingdom jumped by 84,000 to 32.47 million in February 2021, witnessing the first spike in the pandemic era, slightly higher than February 2020 reading.

The benchmark FTSE 100 has failed to bounce back to the previous levels. According to the data available with the London Stock Exchange, the index was trading at 7,049.53, up 0.24 per cent from the previous close of 7,032.85. Notably, the index shed 0.76 per cent, from the intraday peak of 7,102.57.

FTSE 100 (18 May)

(Source: Refinitiv, Thomson Reuters)

 

A considerable part of the gains were reversed in the afternoon session with the futures linked to the Dow Jones Industrial Average turning almost flat. The Dow Futures were trading at 34,272, up 0.05 per cent indicating a dull start to Wall Street.

Meanwhile, the mid-cap heavy index FTSE 250 continued to trade higher at 22,333.91, up 0.54 per cent from the previous close of 22,214.14. During the day, the index registered a high of 22,426.09, up 0.95 per cent.

The market sentiments have remained lacklustre since last week when the investors were disturbed by the rising inflation in the US. The domestic market participants are now looking forward to the CPI-based inflation number of the UK, slated to be declared on Wednesday, 19 May.

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