The FTSE 100 index saw a significant rise of over 1% on Tuesday, reaching new highs above 9,900. This surge occurred as the UK unemployment rate increased to 5%, the highest level since 2021. This development has heightened expectations for a potential interest rate cut by the Bank of England next month, with market analysts now estimating an 80% probability of such a move in December.
Vodafone's shares soared by more than 5% following their announcement of a return to profitability in Germany, alongside a bullish earnings forecast. Meanwhile, WPP's stocks experienced a 5.6% increase amid reports of interest from potential buyers. Additionally, pharmaceutical companies including GlaxoSmithKline, Hikma, and AstraZeneca each saw their shares rise approximately 3%. The oil giants BP and Shell also posted gains of around 2.5%, buoyed by strengthening crude prices, which contributed to the overall market rally.
