Unemployment has risen to its highest level since the pandemic with more than 1.7 million people looking for work.
Earnings growth slowed, but at 4.7% the rate may still concern Bank of England policymakers.
The FTSE 100 index and other stock markets are weaker as attention turns to the results of Wall Street’s banking sector.
FTSE 100 Live Tuesday
- Jobless rate up to 4.8%
- BP production boost
- Close Bros £300m redress
Market update: Builders rally in weaker FTSE 100, Mitie up 8% in FTSE 250
10:21 , Graeme EvansBid speculation today put easyJet on top of a weaker FTSE 100 index as buyers also targeted housebuilders after robust Bellway results.
London’s top flight drifted 12.54 points to 9430.33 during a downbeat session for global markets, with miners among those under pressure.
Low-cost carrier easyJet lifted 4% or 19.7p to 483.7p but had been as high as 518p after speculation in the Italian media flagged potential bid interest by MSC. The shipping company later denied it was considering a move.
In contrast, the shares of British Airways owner IAG fell 2% or 7.3p to 400.9p and Wizz Air lost 5p to 1138p in the FTSE 250 index.
Housebuilders joined easyJet on the FTSE 100 risers board, with Persimmon up 3% or 30.5p to 1199.5p and Berkeley ahead 74p to 4014p.
There was relief at the performance of midcap Bellway, whose 28% rise in annual profit to £289 million came in 2% ahead of the City consensus.
The group also reiterated its sales target for the new financial year, despite near-term market challenges.
Bellway lifted 5% or 128p to 2606p as it accompanied the results with the launch of a £150 million shares buyback programme.
The sector buying came even though a report today said the number of private homes under construction in London is set to slump to as few as 15,000 - about a quarter of “normal” levels - by the end of next year.
The FTSE 100 index fallers board was dominated by the mining sector amid a 3% retreat for the price of copper. Gold bucked the trend by lifting another 0.3% to $4140 an ounce.
Anglo American fell 3% or 88p to 2911p, while Chile-based copper miner Antofagasta weakened 76p to 2751p at the bottom of London’s top flight.
BP shares fell 6.3p to 415.75p, despite the company lifting upstream production guidance in its third quarter trading update.
It flagged a weak result in oil trading, while selling pressure also reflected the latest decline in Brent Crude price to $61.98 a barrel. Shell dipped 13p to 2684p.
The FTSE 250 index handed back some of yesterday’s 1.2% advance after a fall of 0.3% or 59.87 points to 22,004.45.
The reverse came despite some strong performances, led by facilities manager Mitie after it upgraded 2025/26 operating profit guidance to £260 million.
Shares rose 8% or 11.6p to 150.6p as the group also resumed buybacks with the launch of a new £100 million programme.
Hollywood Bowl jumped 5% or 14p to 276.5p after its year-end update flagged record revenues and underlying earnings.
THG rallied 4% or 1.6p to 38.9p as the nutrition and beauty e-commerce business reported third quarter revenues of £405.2 million.
Broker Peel Hunt, which has a price target of 80p, said the figure was £5 million ahead of its forecast and up 6.3% on a constant-currency basis.
Close Brothers lifts car loans provision, shares fall
09:22 , Graeme EvansClose Brothers is to set aside another £135 million in relation to car finance compensation, taking its total to £300 million. Shares fell 3% or 13.4p to 433.6p.
The lender also told investors it did not believe that the redress methodology proposed by the Financial Conduct Authority (FCA) last week appropriately reflected actual customer loss or achieved a proportionate outcome.
Lloyds Banking Group yesterday said it would need an additional £800 million to fund the scheme – bringing its total provision to £1.95 billion.
The banks have been increased their reserves after the FCA published the details of its proposed compensation scheme for drivers who were mis-sold a car loan between 2007 and 2024.
Grocery price inflation above 5%, Tesco grows market share
09:13 , Graeme EvansGrocery price inflation has returned to an annual rate of 5.2%, according to market research firm Worldpanel by Numerator.
The former Kantar business said the rate rose from 4.9% last month to match July’s figure.
Ocado remains Britain’s fastest-growing grocer, with sales rising 3.6% over the 12 weeks to October 5 compared with a year ago.
Lidl saw double-digit growth, with sales up 10.8% to take the discounter’s market share to 8.2%.
Tesco once again made the biggest share gain, climbing by 0.7 percentage points to take 28.3% of the market as spending through its tills increased by 6.9%.
BP shares fall despite production boost
08:49 , Graeme EvansBP today reported higher than expected oil and gas production for the third quarter, offset by weak oil trading.
Results on 4 November are set to show upstream production growth over the previous three months, having previously forecast a weaker performance.
BP flagged that its “oil trading result is expected to be weak” in the third quarter results, while gas trading is seen as “average”.
Net debt at the end of the third quarter is broadly flat compared with the end of the second quarter at around $26 billion (£19.6 billion).
BP shares fell 6p to 416p following the trading update.
Miners weigh on FTSE 100, easyJet shares jump 7%
08:28 , Graeme EvansA weak performance in the mining sector today fuelled a poor session for the FTSE 100 index, with London’s top flight down by 23.90 points to 9418.97.
Anglo American declined 3% or 84p to 2915p and Glencore dipped 7.4p to 349.85p.
BP shares have fallen 6.4p to 415.6p, despite the company lifting upstream production guidance in its third quarter trading update.
It flagged a weak result in oil trading, while selling pressure on the shares also reflected the latest decline in Brent Crude price to $62.88 a barrel. Shell shares were broadly flat at 2699p.
On the risers board, easyJet shares jumped 7% or 33.1p to 497.1p after speculation in the Italian media flagged potential bid interest by MSC. The shipping company later denied it was considering a move.
In the FTSE 250 index, a positive reaction to trading updates helped e-commerce group THG to rise 1.6p to 39p and facilities manager Mitie by 12.2p to 151.2p.
Wall Street set for weaker session
07:55 , Graeme EvansThe start of the third quarter earnings season has fuelled a bout of Wall Street caution after yesterday’s strong session.
Futures trading points to a decline of 0.7% for the S&P 500 index, with the Nasdaq Composite set for a 1% fall.
Major US banks including JPMorgan Chase, Goldman Sachs and Citigroup are set to report their figures before today’s opening bell.
Gold rose above $4150 an ounce earlier today but has since retreated back below $4100. Brent Crude is also lower at $62.88 a barrel.
Wage growth dents 2025 rate cut hopes
07:33 , Graeme EvansCapital Economics said the continued stickiness of wage growth in today’s figures will do little to prompt the Bank of England to cut interest rates again this year.
The consultancy said: “The modest further falls in both payroll employment and job vacancies in September suggest that the labour market is loosening, albeit only slowly, but wage growth is still easing only fairly gradually.
“This suggests the Bank of England will remain more concerned over the upside risks to inflation rather than the downside risks to activity.”
It thinks it is “only a matter of time” before the loosening in the labour market leads to a more marked easing in wage growth, which would allow the Bank to cut rates from 4% now to 3% next year.
Retail sales growth slows - BRC
07:28 , Graeme EvansRetail sales grew 2.3% in September, according to the latest British Retail Consortium (BRC) and KPMG data.
The figure came in above the 12-month average growth rate of 2.1% but short of the previous report’s 3.1% increase.
BRC chief executive Helen Dickinson said: “With the Budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months.
“Rising inflation and a potentially taxing Budget is weighing on the minds of many households planning their Christmas spending.”
Unemployment rate highest since June 2021
07:07 , Graeme EvansThe UK’s unemployment rate today rose to 4.8%, its highest level since June 2021.
The ONS figure for the June to August period is up from the previous month’s reading of 4.7% and compares with City forecasts for no change.
Estimates for payrolled employees in the UK fell by 93,000 or 0.3% in the year to August but increased by 10,000 between July and August.
ONS director of economic statistics Liz McKeown said: “After a long period of weak hiring activity, there are signs that the falls we have seen in both payroll numbers and vacancies are now levelling off.”
Average earnings including bonuses rose by an annual rate of 5%, up from a revised print of 4.8% the previous month.
Regular earnings growth excluding bonuses was 4.7%, with 4.4% for the private sector and 6% for the public sector.
McKeown added: “Wage growth slowed in the private sector to its lowest rate in nearly four years, but public sector pay growth increased, reflecting some public sector pay rises being awarded earlier than they were last year.”
FTSE 100 seen lower, gold advance continues
07:01 , Graeme EvansThe FTSE 100 index is seen falling by about 0.4% at today’s opening bell, despite last night’s recovery for Wall Street markets.
The S&P 500 index bounced back from Friday’s tariffs-led slide by posting a gain of 1.6%, while the Dow Jones Industrial Average lifted 1.3%.
A strong session for mining stocks meant the FTSE 100 index yesterday closed up 15.40 points at 9442.87, behind the 1.2% advance of the FTSE 250 index.
Asia markets are in the red, led by a 3% fall for the Nikkei 225 as trading resumed after yesterday’s holiday.
Gold continued its advance in dealings in Asia, with the precious metal up another 2% at $4178 an ounce.
