FTSE 100 Live: Index Opens in Red at 10,502; UK Jobs Beat Forecasts as Unemployment Falls to 4.9%

The FTSE 100 opened 22 points lower at 10,502 as investors weighed a proposed 10-day US-Iran ceasefire against fresh attacks in the Strait of Hormuz, while stronger-than-expected UK jobs data and lower June public borrowing offered a mixed picture. Meanwhile, Brent crude futures fell 0.54% to $88.74 per barrel. US West Texas Intermediate (WTI) declined 0.19% to $82.32 ‌per barrel.

Sterling was quoted at $1.3446 early Tuesday, higher than $1.3418 at the London equities close on Monday. Against the euro, sterling rose to 1.1767 from 1.1755 a day before. 

Gainers & Losers

On the upside, Babcock International Group surged 6.65% to £11.07. Antofagasta advanced 3.58% to £35.89, while BAE Systems gained 3.17% to £19.35. Endeavour Mining climbed 3.15% to £35.32, and Fresnillo rose 2.89% to £25.28. Glencore also added 2.19% to £5.23.

On the downside, Games Workshop Group fell 1.44% to £198.50, while London Stock Exchange Group declined 1.31% to £87.28. Unilever slipped 1.19% to £45.84, and Diploma lost 1.02% to £72.95. Admiral Group dropped 1.51% to £35.22, while Next edged 0.61% lower to £147.90.

UK Unemployment Declined 

UK unemployment fell to 4.9% in the three months to May, down 0.1 percentage points on the quarter and below the 5% forecast, the ONS said Tuesday. 

Employment rose 148,000 in the quarter, above analysts' estimate of 80,000, with the employment rate at 75.1%. Average weekly earnings grew 4.3% year-on-year, just shy of the 4.5% forecast, while pay excluding bonuses rose 3.4%, in line with expectations. 

Private-sector regular pay growth was 2.9%, compared with 5.5% in the public sector. Vacancies fell 7,000 to 712,000 in the second quarter.

MHA’s Pre-Tax Profit Rises

Professional services firm MHA posted double-digit revenue growth in its first year as a London-listed company. The group’s pre-tax profit jumped 11% to £39 million as revenue grew 12% to £251 million. 

Over the past year, the listed business saw a 16% jump in fees from listed clients, driven largely by 15% organic growth within that client base. 

Since its IPO, the firm has completed two key acquisitions: Baker Tilly South-East Europe and MS UAE in the Middle East. MHA’s ambition is to double its current size, targeting annual revenues of over £500 million. 

Key Fiscal Target Missed

Official data on Tuesday showed that the current budget deficit exceeded forecasts from the Office for Budget Responsibility (OBR). 

The Office for National Statistics (ONS) said borrowing to fund day-to-day public sector spending was £11.8 billion in June, around £1.3 billion above the OBR's estimate. 

Government borrowing was slightly lower than expected in the month at £16 billion, though total borrowing in the current financial year had now been brought to £57.6 billion. Public sector debt was higher than the same point last year at 94.9% of GDP.

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Global Market View

In the US, the S&P 500 fell on Monday as oil prices advanced; the index dropped 0.19% to close at 7,443.28, while the Nasdaq Composite lost 0.05% and the Dow Jones Industrial Average fell 307.16 points, or 0.59%.

In Asia on Thursday, Tokyo's Nikkei 225 rose 3.26% to 66,232.19, while China’s Shanghai Composite advanced 1.79%. Hong Kong’s Hang Seng fell 0.094%, and South Korea’s Kospi gained 3.56%. In India, both the Nifty 50 and the Sensex fell by 0.33% and 0.41%, respectively.