FX.co ★ FTSE 100 Trades Near Record Levels

The FTSE 100 increased by 0.4% to approach near-record levels at 8,870, driven by UK labour data and optimism surrounding US-China trade negotiations in London. The UK's unemployment rate climbed to 4.6%, marking its highest point since 2021, with the most significant job losses noted since the pandemic. Wage growth also fell short of expectations. This easing in the labour market has heightened anticipations of interest rate cuts from the Bank of England, with a rate reduction in September now almost fully anticipated. Globally, markets recorded gains as talks between US and Chinese officials progressed, fueling hopes of averting an intensified trade conflict. In corporate developments, Diageo's shares saw a slight increase following news it may sell all or part of the IPL team, Royal Challengers Bengaluru, which it owns through United Spirits. The team is potentially valued at $2 billion following their maiden IPL victory. Meanwhile, homebuilder Bellway reported robust trading through the spring, citing higher buyer confidence and improved reservation rates. Its order book expanded, average selling prices increased, and incentives remained consistent, thereby supporting its full-year guidance.