FTSE 100 Live: Index Edges Higher as Rate Cut Hopes Lift Housebuilders; Miners Weigh on Gains

FTSE 100 opened slightly higher in the early trade. The index climbed 0.3% or 29.05 points to 10,502.74 as softer labour market data strengthened expectations of further Bank of England rate cuts. Sterling slipped 0.4% against the dollar to $1.3571 following the release.

Labour Market Weakness Fuels Rate Cut Expectations

Data shows the UK unemployment rate rising to 5.2% in the October to December period. This marks its highest level in nearly five years and exceeds forecasts of 5.1%. 

In London unemployment reached 7.6% which is the worst regional figure in the country and the highest level seen in 5 years. The numbers leave approximately 383,000 people actively searching for work.

Average earnings growth including bonuses slowed to 4.2% from 4.6% previously. Private sector pay growth eased to 3.4%. It has moved closer to the Bank of England’s 3.25% level seen as consistent with its 2% inflation target. 

Housebuilders Rally, IHG Gains on Strong Results

Persimmon rose 1.30% to £1,524 and Barratt Redrow gained 1.23% to £378.50. Hopes of improved mortgage affordability have boosted sentiment across the housing sector.

InterContinental Hotels Group climbed 3.56% to £149.65 after it reported a 13% increase in operating profit to $1.2 billion for 2025. 

The Holiday Inn owner also announced a new $950 million share buyback program. This comes after returning more than $1.1 billion to shareholders last year. The scenario reinforces confidence in its capital return strategy.

Among others, RELX advanced 1.20% to £2,200, Airtel Africa added 1.55% to £341.40 and Metlen Energy & Metals rose 1.65% to £36.90.

Mining Stocks Slide Despite Strong Copper Results

The mining sector limited the upside. Antofagasta fell 2.11% to £3,667 despite a 30% jump in annual revenue to $8.6 billion and a 53% rise in pre-tax profit to $3.5 billion. Investors appeared to lock in gains following last year’s surge in copper prices.

Other miners also traded lower as Endeavour Mining declined 2.05% to £4,590. Fresnillo dropped 2.26% to £3,728, and Anglo American eased 0.64% to £3,555. 

Among others, Weir Group also slipped 1.20% to £3,468, while Coca-Cola Europacific Partners edged 0.54% lower to £7,390. 

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Global Markets 

Wall Street markets are set for a weaker start later today in the US as trading resumes after the Presidents’ Day holiday.

In Asia, Japan’s Nikkei 225 declined 0.4%. Gold prices fell 1.6% and Brent crude slipped 0.7% to $68.23 per barrel.