By Utkarsh Hathi
(Reuters) -London’s export-focused FTSE 100 rose to a new intraday record peak on Tuesday, buoyed by a weakening pound after economic data revealed rising unemployment and slowing wage growth, while drugmaker AstraZeneca climbed to an all-time high.
The blue-chip FTSE 100 index rose 0.8% by 1210 GMT, building on its record close posted in the previous session.
Meanwhile, the mid-cap FTSE 250 gained 0.5%.
AstraZeneca rose 1.7% to surpass its September 2024 peak and solidify the company’s position as the UK’s largest listed stock by market value, driven by momentum from last week’s forecast-beating quarterly results.
Meanwhile, the UK labour market showed clear signs of cooling, with unemployment increasing to 5%, the highest in four years, while wage growth continued to slow. These figures have bolstered expectations for a Bank of England rate cut in December.
“There’s more slack building in the labour market – and perhaps more so than assumed by the MPC in its November projections; and two, pay momentum continues to slow. Both should be encouraging for the MPC,” said Deutsche Bank’s chief economist Sanjay Raja.
The pound fell against the dollar and British government bonds rallied as the figures aligned with the central bank’s insistence on seeing clearer signs of easing inflation before proceeding with another rate cut.
In the market, media stocks gained 2.7% with advertising and marketing firm 4imprint Group surging 17%, after it raised full-year profit and revenue forecast.
Vodafone reached a two-year high, climbing 5.5%, after a strong performance in Germany helped the company to raise its annual profit forecast and lift dividends for the first time in eight years.
Scientific tools maker Oxford Instruments surged 12.7%, on track for its biggest single-day gain in nearly four years, on improved order momentum.
On the downside, food supplier Hilton Food slumped 22.5% to the lowest since 2015 after it said that profit growth is likely to be challenging in the next financial year.
(Reporting by Utkarsh Tushar Hathi in Bengaluru; Editing by Vijay Kishore)
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