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London stocks rise on mixed jobs report

written by Bella Palmer

The benchmark index FTSE 100 was 0.2% higher, while the midcap FTSE 250 index closed 0.3% higher

London stocks rose on Tuesday, led by advances in the personal goods sector, while tightness in the labour market and strong wage growth had investors on edge about interest rate cuts.

The benchmark index FTSE 100 was 0.2% higher after snapping a six-session winning streak on Monday. The midcap FTSE 250 index closed 0.3% higher.

The personal goods sector jumped 2.0% to lead gains on the index, while medical equipment and services followed with a 1.1% gain.

The energy sector dropped 1.0%, the most among sectors, mirroring weakness in oil prices.

Meanwhile, data showed on Tuesday that British wages grew more than expected, but other figures indicated the labour market was losing some of its inflationary heat, pushing money market participants to remain split on June rate cut bets.

Markets appeared to be a little bit subdued. It seems to have digested slightly stronger than expected wage growth relatively well. It may be focusing a little bit more on the inflation data in the next few days, according to Richard Flax, chief investment officer at Moneyfarm.

Investor focus will now shift to a key inflation reading in the US, due on Wednesday, to gauge the Fed's monetary policy trajectory.

We have U.S. CPI tomorrow and investors may be just looking at whether the macro environment really could improve from here, Flax said.

In corporate news, Vodafone gained 4.7% after the telecom operator met market forecasts for the year to end-March.

Flutter Entertainment shed 1.9% after the biggest online betting company reported its first quarter results.

Anglo American dipped 3.2% to the bottom of the index, after Reuters reported company is exploring an IPO of its diamond business De Beers, amid urging from BHP Group's boss to consider takeover benefits.


The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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