UK stocks rise as weak jobs data cools rate hike worries
UK stocks rise as weak jobs data cools rate hike worries
ReutersTue, May 19, 2026 at 11:31 AM UTC
0
FILE PHOTO: Branding is seen inside the LSEG (London Stock Exchange Group) headquarters in Paternoster Square, London, Britain, April 25, 2025. REUTERS/Toby Melville/File Photo
May 19 (Reuters) - UK equities rose on Tuesday after data pointed to a softer labour market that eased worries of an immediate rate hike.
The blue-chip FTSE 100 index rose 0.61% as of 11:13 am GMT, while the midcap FTSE 250 climbed 0.81%.
• Data from the tax office showed that April payrolls fell 100,000 from March, while the unemployment rate ticked up to 5% for the first quarter, from 4.9% in the three months to February.
• "Today's labour market report will not just make for an uncomfortable reading, it will likely stop the MPC (Bank of England's Monetary Policy Committee) in its tracks," said Sanjay Raja, chief UK economist at Deutsche Bank.
• Traders expect a 29.1% chance of a rate hike at the June meeting, according to data compiled by LSEG.
Advertisement
• "We're still forecasting a rate hike in June, but that is far from guaranteed," said James Smith, ING's developed markets economist, UK.
• The reprieve in equities gave investors breathing room after a period marked by elevated political uncertainty.
• On Monday, Prime Minister Keir Starmer reiterated that he would remain at the helm, but several of his Labour Party's lawmakers have called for him to quit.
• Investment banking shares rose 2.58%, while retailers advanced 2.49%.
• IG Group rose 10.22%, the biggest gainer on the FTSE 100, after it raised its annual and medium-term revenue forecasts for the second time this year.
(Reporting by Niket Nishant in Bengaluru; Editing by Vijay Kishore)
Source: “AOL General News”
