FTSE 100 Live: Index Hits Record High as Vodafone Surges on Dividend Revival; Pound Slips on Rate-Cut Bets

In early Tuesday trading, the FTSE 100 climbed by 1% to 9,892.04, setting a new intraday high as positive company earnings results propelled sentiment in the UK's markets, and the continuing positive forecast seemed to be reassuring investors. In the lead were Vodafone, WPP, and British American Tobacco. Croda International and Auto Trader lagged behind. 

Vodafone Helps FTSE 100 Reach New High

Vodafone saw its shares climb by 5.85% to 94.12, following the telecoms giant announcing they increased their full-year guidance after increasing their first dividend since 2018. 

Vodafone slightly exceeded market expectations in reporting a 5.9% rise in underlying earnings (EBITDAaL) at €5.73 billion for the half-year ended September 30. The service revenue saw an 8.1% rise to €16.3 billion, as growth was reported in Germany and the UK. The Company's CEO, Margherita Della Valle, confirmed the new progressive dividend policy and projects a 2.5% increase paid out in the financial year.

Advertising firm WPP climbed 3.07% to £295.70, and energy company SSE increase by 2.19% to £1,985.50 on continued good news and stable energy demand. 

British American Tobacco (BATS) climbed 2.11% to £4,252, continuing a gradual increase.

The housebuilders were also attractive, as mortgage rates were falling and rate cuts from the Bank of England now appeared more certain.

Barratt Redrow climbed by 2.16% to £397, and Berkeley Group gained 2.06% to £4,054. with a renewed appetite from investors for property stocks. 

Market Gainers: WPP, BATS, SSE, and Barratt Rise

Advertising firm WPP rose 3.07% to £295.70, while energy major SSE gained 2.19% to £1,985.50 amid optimism over stable energy demand. 

British American Tobacco (BATS) advanced 2.11% to £4,252, continuing its steady rebound.

Housebuilders were another highlight, fueled by falling mortgage rates and growing expectations of a Bank of England rate cut. 

Barratt Redrow climbed 2.16% to £397, and Berkeley Group added 2.06% to £4,054, reflecting renewed investor appetite for property stocks.

Losers: Croda and Auto Trader Slip

Specialty chemicals maker Croda International fell 2.77% to £2,704, leading the decliners after weaker industrial demand weighed on the outlook. 

Auto Trader Group slipped 1.97% to £736.20, Burberry fell 0.25% to £1,179, Babcock International declined 0.17% to £1,192, and Smith & Nephew fell 0.12% to £1,269.

Economic Update: Pound Weakens, Unemployment Climbs

The pound dipped 0.3% to $1.312 after the latest labour data showed rising unemployment, reinforcing expectations of a December rate cut. 

The UK unemployment rate increased to 5%, its highest since 2021, while average earnings growth slowed to 4.8% in the three months to September.

ONS data showed payroll numbers falling by 117,000 YoY, signaling a cooling labour market. 

Also Read: Stock Market Update: Nifty 50, Sensex Set to Open Higher; Bank Nifty Outlook Positive as FIIs Turn Buyers

Retail Sales and Global Market Context

UK retail sales growth slowed sharply in October, rising 1.6% YoY, down from 2.3% in September, as consumers delayed purchases ahead of Black Friday. 

US tech stocks on the Nasdaq led the charge overnight, surging 2.3%, while the S&P 500 rose 1.5% and the Dow Jones finished up 0.8%. In Asia, the Hang Seng is down 0.2% in Hong Kong and the Nikkei is down 0.1%.