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Highlights:
FTSE 100, FTSE 250, and AIM All-Share opened in positive territory despite a rise in the UK jobless rate
DCC (LON:DCC) led declines after reporting lower annual profit and revenue
Revolution Beauty (LON:REVB) dropped sharply on lower earnings expectations, while Eden Research (LON:EDEN) rose on product approval news
London’s equity market opened in positive territory on Tuesday, with the FTSE 100, FTSE 250, and AIM All-Share posting mild gains, supported by overnight strength from Wall Street. This came amid newly released UK labour market data showing an increase in the unemployment rate to its highest level in several years.
UK Job Market Update
The UK jobless rate ticked higher in the latest quarter, accompanied by subdued wage growth. According to official data, the unemployment rate rose slightly while the employment rate remained unchanged. Economic inactivity recorded a minor increase, and job vacancies extended their long-running decline. Hiring slowed across the majority of industry sectors.
Pay growth moderated, with both regular earnings and total pay figures coming in lower than the previous reporting period. Wage metrics fell just short of market expectations, indicating weaker-than-anticipated income momentum across the economy.
Pension Fund Commitment to Infrastructure
A significant development in UK capital allocation came with news that multiple workplace pension providers have pledged to direct a portion of their funds into domestic infrastructure and private markets. This initiative, known as the Mansion House Accord, is designed to channel long-term funding into UK-based projects and businesses. Participating firms aim to commit a portion of defined contribution pension assets to private assets, including a minimum allocation towards the UK market. This move was positively acknowledged by government officials.
European Markets and Regional Forecasts
Broader European equities traded positively, with Paris’ CAC 40 and Frankfurt’s DAX 40 both edging higher. In parallel, the European Bank for Reconstruction & Development revised down its economic growth outlook for Central Europe and the Balkans, citing pressure from global trade dynamics and regional economic challenges.
Currency and Commodities Movement
In early London trading, the British pound moved marginally higher against the dollar. The euro also gained ground against the greenback, while the dollar slipped slightly against the yen. In commodities, gold prices advanced and crude oil prices eased slightly compared to previous session levels.
Top Performers and Laggards on FTSE 100
Sales and services group DCC (LON:DCC) recorded a drop at market open following its annual results. The company reported a decline in pretax profit and revenue, though it increased its final dividend. After the disposal of its healthcare division, DCC announced plans to return capital to shareholders through phased initiatives, including a share buyback.
Beauty and personal care firm Revolution Beauty (LON:REVB) saw its shares tumble after issuing preliminary earnings figures for its latest financial year. The company reported a decline in revenue and earnings due to product rationalisation. It noted weaker trading conditions, particularly among online retailers and US consumers, though cost control efforts are expected to offset some pressure on future profitability.
Eden Research (LON:EDEN) was among the notable gainers after announcing that its fungicide product received additional regulatory approval in California. The extension covers new crop usage, building on existing clearances. While the company stated this does not change its short-term revenue expectations, the move supports its broader market engagement strategy.
Asian and US Market Snapshot
Asian markets showed resilience overnight, with gains in Tokyo’s Nikkei 225, the Shanghai Composite, and Hong Kong’s Hang Seng Index. The S&P/ASX 200 in Sydney also ended higher. On Wall Street, all major indices closed firmly in positive territory, with the Nasdaq Composite leading the gains. The broader S&P 500 index also recovered ground, reflecting improved sentiment following reduced trade tensions between major economies.
