FTSE 100 climbs on Rolls Royce layoffs, softer wage growth data
Business
FTSE 100 climbs on Rolls Royce layoffs, softer wage growth data
(Reuters) - UK's FTSE 100 rose on Tuesday, as aerospace and defence stocks jumped on layoffs announced by Rolls Royce, while the latest earnings data showing a slowdown in wage growth boosted investor sentiment.
Both the blue-chip FTSE 100 (.FTSE) and the mid-cap index (.FTMC) added 0.4% each by 0820 GMT.
Engineering company Rolls-Royce (RR.L) said it would cut 2,000-2,500 roles across its global business as part of a cost-cutting drive, sending shares up 1.9%. The broader aerospace and defense index (.FTNMX502010) added 1.1%.
Meanwhile, data showed growth in British workers' regular pay slowed for the first time since January from a previous record high and job vacancies also dropped during the three months to the end of August.
"UK earnings data suggests that signs of slack continue to emerge, highlighting the fragility of the economy as elevated inflation and the Bank of England's rate hikes take their toll on the jobs market," said Victoria Scholar, head of investment at Interactive Investor.
Heavyweight oil and gas shares (.FTNMX601010) rose 0.6% as oil prices moved higher amid hopes the US would ease sanctions on producer Venezuela.
Pharma and biotech shares (.FTNMX201030) added 1.3% and were the top gainers on the FTSE 100. US pharmaceutical giant Johnson & Johnson (JNJ.N) is expected to post its quarterly results later in the day.
Industrial metal miners (.FTNMX551020) were down 1.2%, leading declines following a downturn in copper prices as the US dollar and Treasury yields firmed ahead of US retail sales and industrial production data due later in the day.
Bellway(BWY.L) fell 1.3% after the homebuilder reported a slump in its annual profit and warned to build 31% fewer homes in 2024, as high mortgage rates took a toll on demand.
The homebuilders' index (.FTNMX402020) was down 0.2%.
St. James's Place (SJP.L) said it will change its fee structure for most new investment bonds and pensions, sending the shares up 2.4% to the top of the FTSE 100.
