Spreadex Market Update
Mixed bag UK jobs report flags areas for concern, FTSE fails to muster momentum
With the unemployment rate unchanged at 5.1%, the employment rate hitting a record high of 74.2% and wage growth unexpectedly bouncing back to 2% things looked, on the surface, fairly stable in the UK jobs sector. Yet questions remain over the quality of the jobs being created, when adjusted for inflation wage growth is still under its pre-crisis levels and although this April saw a reduction in those claiming unemployment benefits for March the figure was revised up to 14700, the biggest monthly rise in over 4 and a half years. In other words, there are still more than a few reasons to be concerned about the UK economy, a sentiment that fed into the FTSE and prevented it doing much of anything as the morning continued.
Over in the Eurozone things were a bit perkier, both the DAX and CAC managing a 0.2% rise as the region-wide inflation figures failed to throw up any nasty surprises. Not that the data was in any way promising; the headline number remained in negative territory whilst the core figure was nudged down to 0.7%.
Having sparked a rush of comments reassessing the chances of a rate hike in June or July with its inflation data yesterday afternoon the US doesn’t provide its indices with much to work with this Wednesday. Rather accurately reflecting the empty economic calendar (bar the FOMC meeting minutes this evening) were the Dow futures, pointing to an effectively flat open when the bell rings on Wall Street.
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