The FTSE 100 index increased by 0.4%, nearing its record levels at 8,870, driven by UK labor data and optimism surrounding the US-China trade negotiations in London. The UK's unemployment rate climbed to 4.6%, marking the highest point since 2021 and the most significant job losses experienced since the pandemic, while wage growth lagged behind expectations. The easing labor market has heightened expectations for potential interest rate cuts from the Bank of England, with a September reduction nearly fully anticipated by investors. On a global scale, markets advanced as discussions between US and Chinese officials persist, fostering hopes of averting a comprehensive trade conflict.
In corporate developments, shares of Diageo saw a slight uptick due to reports suggesting the company might sell all or part of the IPL franchise Royal Challengers Bengaluru, which it holds through United Spirits. The team, valued at an estimated $2 billion following its inaugural IPL championship, is garnering investor interest. Meanwhile, homebuilder Bellway reported robust trading during the spring season, benefiting from increased buyer confidence and enhanced reservation rates. The company’s order book expanded, average selling prices increased, and incentive levels remained steady, reaffirming its full-year guidance.
