LIVE: FTSE and Wall Street higher as US job openings data misses forecasts
A look at how the major markets are performing on Tuesday
European stock markets were higher on Tuesday as price rises in the UK slowed to their lowest rate since October last year, and US jobs data came in lower than expected.
In London, the FTSE 100 (^FTSE) rose 1.8% on the day, while the CAC (^FCHI) was 0.6% higher in Paris, and the Frankfurt DAX (^GDAXI) was also gained 0.8%.
Across the pond, the S&P 500 (^GSPC) climbed 0.9% and the tech-heavy Nasdaq (^IXIC) was 1.4% higher at the time of the European close. The Dow Jones (^DJI) was 0.3% higher.
The number of job openings in the US came in lower than expected in July at 600,000.
The job openings and labour turnover survey (JOLTS) showed that there were 8.8 million job openings for the month, down from 9.2 million the month before. This was well below the 9.5 million expected by economists polled by Reuters.
It marked the sixth decline in the last seven months.
In the UK, prices rose 6.9% in the year to August, down from 8.4% in July, thanks to fresh food prices climbing less rapidly, according to the British Retail Consortium (BRC). Fresh food inflation slowed to 11.6% in August, down from 14.3% the month before.
“These figures would have been lower still had the government not increased alcohol duties earlier this month," Helen Dickinson, chief executive at the BRC, said.
"While inflation is on course to continue to fall thanks to retailers’ efforts, there are supply chain risks for retailers to navigate.
“Russia’s withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation.
“A potential £400m hike to business rates bills from next April would certainly jeopardise efforts to tackle inflation unless the chancellor intervenes.”
Read more: Trending tickers: Bunzl | Argo Blockchain | Persimmon | Dalata
Stocks were also boosted by optimism over fresh policy support from China, which also confirmed on Sunday that it was halving stamp duty on stock trades.
John Choong, analyst at Investing Reviews, said: "Stimulus measures being enacted in China, along with a positive reaction to Jerome Powell’s speech on Friday, have also boosted market sentiment. That said, investors should be wary of celebrating too soon.
"While today’s figures are encouraging, the outlook for core and services inflation, which Andrew Bailey has gone on record saying is more important at the moment, remains cloudy. As such, there’s still inconclusive evidence of core and services inflation cooling.
"But provided more disinflation prints like Tuesday’s continue, markets should pull back on their expectations for the Bank’s terminal rate. This would inevitably be good news for stocks in the banking and housebuilding sectors."
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Blog close and recap
Well that's all we have time for today, thanks for following along. Be sure to join us again tomorrow for more.
Here's a quick recap of the top headlines...
UK air travel disruption to last for days
London ULEZ expands today
German consumer confidence falls
Wilko redundancies suspended
Post-Brexit border checks delays for fifth time
US jobs data lower than expected
Have a good evening all.
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Property: 9 steps to taking in a lodger
![property]()
property As the cost of living crisis continues to bite and mortgage payments rise, homeowners are looking for ways of generating extra income to cover increased expenses.
Renting out the spare room to a lodger is an increasingly popular solution, with recent research by The Mortgage Lender finding that 7% of those surveyed have already done so, 10% plan to in the future, and 16% are considering it.
Under the government’s Rent a Room Scheme, you can earn up to £625 a month tax free by letting a furnished room to a lodger.
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Network Rail withholds bonuses from strikers
Network Rail has withheld annual bonuses from union members who took part in strikes.
The group told staff that those who took part in any of the strikes from June 2022 onwards that they will not receive a bonus.
The RMT called the move “disgraceful” and an attempt to divide workers in the union.
The bonus is understood to have been much lower than usual this year owning to Network Rail’s performance, which was heavily affected by the strikes. However, those who did not strike will receive about £300.
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US consumer confidence weakens
Sticking with news from across the pond...
Business research group, The Conference Board, said its consumer confidence index tumbled to 106.1 in August, down from a revised 114 in July and missing expectations of a reading of 116.
The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. Both measures saw significant declines in August.
Consumers’ view of current conditions fell to 144.8 from 153, and the index for future expectations slid to 80.2 from 88 in July. Readings below 80 for future expectations historically signals a recession within a year.
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US jobs data lower than expected
The number of job openings in the US came in lower than expected in July at 600,000.
The job openings and labour turnover survey (JOLTS) showed that there were 8.8 million job openings for the month, down from 9.2 million the month before. This was well below the 9.5 million expected by economists polled by Reuters.
It marked the sixth decline in the last seven months.
The so-called quits rate, which measures voluntary job leavers as a share of total employment, dropped to 2.3%, the lowest since the start of 2021.
Meanwhile, the US two-year bond yield has plunged nine basis points to 4.91% following weak JOLTS numbers. Markets seem hopeful that inflation will ease.
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Bunzl upgrades profit forecast
![Person holding smartphone with website of British distribution company Bunzl plc on screen in front of logo. Focus on center of phone display.]()
Person holding smartphone with website of British distribution company Bunzl plc on screen in front of logo. Focus on center of phone display. Bunzl (BNZL.L) shares climbed as much as 4% on Tuesday after upgrading its profit forecast thanks to easing cost pressures.
The packaging company and business supplies distributor posted a 4% rise in underlying pre-tax profits to £395.6m ($497.6m) for the six months to 30 June, while earnings came in 0.8% lower once currency movements were stripped out.
Underlying operating profits rose 6.5% to £438.3m during the period, and it also upgraded its profit margin outlook.
The group, which had snapped up two more companies in Poland and the Netherlands, now expects annual underlying earnings to be “moderately higher” than in 2022 at constant exchange rates.
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Post-Brexit border checks delays for fifth time
The UK government has said it will delay the introduction of post-Brexit checks on food by another three months.
The UK’s Cabinet Office said that “remaining sanitary and phytosanitary controls, as well as full customs controls for non-qualifying Northern Ireland goods, […] will now be introduced from January 2024.
The government said in April that new checks would come into force end of October.
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Wall Street lower ahead of US job data
US stock markets are lower in premarket trading ahead of job openings figures due later today.
S&P 500 futures (ES=F) are down 0.2%, Dow futures (YM=F) have lost almost 0.2%, and Nasdaq futures (NQ=F) are also 0.2% lower an hour before the opening bell in New York.
Further economic data is scheduled to be released this week, including the personal consumption expenditures price index and non-farm payrolls.
The Labour Department’s Job Openings and Labour Turnover Survey (JOLTS) will be published at 3pm (BST) and is expected to show the number of job openings fell to 9.46m from 9.58m in July.
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Wilko redundancies suspended
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Redundancies at Wilko will be suspended while administrators consider further bids, the GMB union said on Tuesday.
It said: "Whilst this is a positive development, Wilko is not out of the woods by any means".
The union met with administrators this morning to discuss multiple bids which have been made for the discount retailer.
Andy Prendergast, GMB national secretary said:
“All redundancies at Wilko have been suspended while the administrator considers further bids.
“Whilst this is a positive development, Wilko is not out of the woods by any means and this is a time of incredible stress and worry for the 12,500 workers who face losing their jobs.”
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Metal prices rise
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said:
Fresh evidence that inflation is going in the right direction and fresh stimulus for industries in China have given the FTSE 100 a big spring in its step in early trade.
Commodity giants have jumped higher as metals prices have risen after Beijing introduced support for transport, property and infrastructure projects. For now this extra help has boosted sentiment but underlying questions still remain over the fragility of China’s economy.
Watch: How does inflation affect interest rates?
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