London midday: Stocks flat as investors digest jobs data

(Sharecast News) - London stocks were steady by midday on Tuesday as investors mulled the latest UK jobs data. The FTSE 100 was flat at 8,521.14, erasing earlier small gains.

Figures released by the Office for National Statistics showed that the unemployment rate and wages grew in the three months to November.

The unemployment rate rose to 4.4% from 4.3%. Meanwhile, average earnings including bonuses grew 5.6% on an annual basis, up from 5.2% and in line with consensus forecasts.

Pay excluding bonuses was also up 5.6% from 5.2%, in line with expectations.

ONS director of economic statistics Liz McKeown said: "Pay growth picked up for a second consecutive period, again driven by strong increases in the private sector. Real pay growth, which excludes the effects of inflation, increased slightly.

"The number of employees on payroll, drawn from tax data, fell in the three months to November.

"Alongside this, the number of vacancies fell again, for the 30th consecutive period, although the total number remains slightly above its pre-pandemic level."

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said UK markets "are feeling their way tentatively through the first day of a Trump Presidency".

"Wage growth in the UK has hit a six-month high, driven by strong private sector pay growth, creating a solid foundation for consumer spending in 2025. Real wages, up 2.5% after inflation (excluding bonuses), are boosting household spending power - a positive for retailers and the broader economy," he said.

"While rising wages reignite inflation concerns, softening unemployment figures and expectations of a downward trend in pay from here suggest the Bank of England is still on track to cut rates in February."

In equity markets, Lloyds Banking was the top gainer on the FTSE 100 and Close Brothers surged following reports that Chancellor Rachel Reeves has launched a bid to protect car-loan providers from multibillion-pound payouts in a landmark mis-selling case.

According to the Financial Times, the Treasury has sought permission to intervene in the Supreme Court.

Britzman said the UK government's backing in the motor finance case is a clear positive for Lloyds, which is the bank most exposed to the issue.

"By urging the Supreme Court to adopt a fair and measured approach, the Treasury is helping to ease fears of hefty penalties, potentially softening the financial blow for lenders. While Barclays has less exposure and NatWest none, the government's bank-friendly stance should help lift confidence across the sector," he said.

Elsewhere, Abrdn rose as it said investments returned to inflow in the fourth quarter.

Elementis gained as it said full-year operating profit was set to be ahead of market expectations following a strong fourth-quarter performance.

4Imprint was in the black as it hailed a "strong" full-year financial performance, while Premier Foods advanced as it said full-year trading profit would be at the upper end of its previous guidance.

On the downside, Marshalls fell after it said full-year profitability would be within the market range, but reported a drop in revenues and struck a cautious note on the outlook.

QinetiQ also lost ground after an update.

Market Movers

FTSE 100 (UKX) 8,521.14 0.01% FTSE 250 (MCX) 20,560.74 0.36% techMARK (TASX) 4,658.05 -0.68%

FTSE 100 - Risers

Lloyds Banking Group (LLOY) 61.02p 4.02% Games Workshop Group (GAW) 13,800.00p 1.85% Airtel Africa (AAF) 125.80p 1.62% Auto Trader Group (AUTO) 795.60p 1.43% Rentokil Initial (RTO) 381.80p 1.06% Kingfisher (KGF) 250.50p 1.05% AstraZeneca (AZN) 10,906.00p 1.04% International Consolidated Airlines Group SA (CDI) (IAG) 325.90p 0.99% Admiral Group (ADM) 2,640.00p 0.96% Beazley (BEZ) 841.00p 0.90%

FTSE 100 - Fallers

Rightmove (RMV) 650.80p -2.05% Sainsbury (J) (SBRY) 260.20p -1.74% Haleon (HLN) 367.00p -1.71% Anglo American (AAL) 2,582.50p -1.45% Associated British Foods (ABF) 1,973.50p -1.42% Glencore (GLEN) 381.70p -1.42% Mondi (MNDI) 1,207.50p -1.39% BT Group (BT.A) 140.25p -1.34% Antofagasta (ANTO) 1,761.00p -1.10% Melrose Industries (MRO) 573.80p -1.07%

FTSE 250 - Risers

4Imprint Group (FOUR) 5,400.00p 8.54% Elementis (ELM) 157.00p 6.95% Alpha Group International (ALPH) 2,405.00p 6.89% Kier Group (KIE) 144.80p 4.62% Trainline (TRN) 391.20p 3.88% Tritax Big Box Reit (BBOX) 141.50p 3.59% Abrdn (ABDN) 146.25p 3.28% Dr. Martens (DOCS) 70.60p 3.07% Premier Foods (PFD) 183.80p 2.68% Hochschild Mining (HOC) 226.00p 2.49%

FTSE 250 - Fallers

QinetiQ Group (QQ.) 373.40p -11.22% Marshalls (MSLH) 235.50p -7.83% W.A.G Payment Solutions (WPS) 80.00p -5.66% Greggs (GRG) 2,134.00p -2.29% Senior (SNR) 158.00p -1.99% Future (FUTR) 895.00p -1.54% Chemring Group (CHG) 321.00p -1.53% Grainger (GRI) 213.00p -1.39% Safestore Holdings (SAFE) 605.50p -1.22% Wood Group (John) (WG.) 69.50p -1.21%