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FTSE At Pandemic Peak As UK Jobs Markets Shows Signs Of Improvement

Published 15/06/2021, 09:53
Updated 21/10/2020, 09:15

A decent UK jobs report allowed the FTSE to open at its highest level since the pandemic began this Tuesday.

The most relevant figure this morning was the claimant count change reading for the month of May. Instead of adding another 25,000, there was a 92,600 drop in claimants, not far off double the upwards revised 55,800 reduction posted in April.

That latter figure contributed to the unemployment rate for the 3 months to the end of April falling from 4.8% to 4.7%. The average earnings index also surpassed expectations, leaping past forecasts of 4.6% as it rose from 4.3% to 5.6%.

Though the resulting gains for the FTSE were hardly impressive, a 0.2% increase was still enough to push it to its best open since the end of February, i.e. the start of 2020’s pandemic-plunge. The index remains, however, 20 or so points short of yesterday’s intra-day peak.

Elsewhere a 0.6% increase for the DAX lifted the German bourse to a fresh all-time high, while the CAC was pushing for a recent peak of its own as a 0.4% rise left it 5 points off 6,650.

In contrast the Dow Jones remains without momentum, though a prospective 0.1% increase this afternoon would lift it back above 34,400.

There’s a flurry of activity pre-open that will likely alter the Dow’s eventual performance this afternoon. Retail sales for May are set to drop to -0.6% month-on-month, but with the core reading jumping from -0.8% to 0.4%. PPI, meanwhile, is expected to dip from 0.6% to 0.5%.

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