FX.co ★ FTSE 100 Trades Lower on Tuesday

The FTSE 100 experienced a decline on Tuesday as investor sentiment was negatively impacted by a combination of mixed UK employment data and renewed trade tensions. Recent statistics revealed that unemployment has increased to 4.8%, marking the highest rate since May 2021, while wage growth has sustained levels that led to expectations of impending interest rate cuts by the Bank of England. This anticipation of a more lenient monetary policy resulted in a decrease in gilt yields and a depreciation of the pound. Additionally, concerns regarding the labor market further dampened overall market sentiment. The situation was exacerbated by China imposing restrictions on the US operations of Hanwha Ocean, which reignited fears of a trade war. The mining sector faced significant challenges, with iron ore prices dropping and a rise in risk aversion: Rio Tinto saw a nearly 2% decrease despite announcing a 10% year-over-year increase in copper production for the third quarter. Similarly, Anglo American shares fell by over 3%, while Antofagasta and Glencore declined by more than 2.5%, Fresnillo dropped 1.6%, and Endeavour dipped 1%. BP shares also fell by over 1% in response to a decline in oil prices. In contrast to the general market downturn, EasyJet's shares rose by more than 7% following speculation that Italy's Mediterranean Shipping Co might be considering a takeover bid.