Spreadex Market Update
Commodities and Burberry hamper FTSE as UK jobs report looms
Reports on Tuesday claimed that job vacancies in the UK slid 9% across April, with employers revolting against the introduction of the National Living Wage. It will be interesting, then, to see if this trend has had any material impact on the unemployment rate, with analysts expecting it to remain at 5.1% for the 5th month in a row. Wage growth, meanwhile, continues to be the most pressing issue, with forecasts suggesting a slip from 1.8% to 1.7%, potentially the worst reading in over a year.
With all that looming on the horizon the FTSE fell by 0.2% at the open, just about slipping back below the 6150 mark. Of course the index wasn’t helped by the reversal in the commodity sector, the oil and mining stocks sliding after two days of Brent Crude-led growth. Nor did a 3.5% fall form Burberry aid the UK index, the luxury brand revealing a 6.5% plunge in full year pre-tax profit following a 1% drop in revenue, with ‘significantly lower footfall’ in key region Hong Kong blamed for the downturn.
The Eurozone was a bit milder this morning, the DAX and CAC both starting the day relatively flat. The region has its own inflation issues to deal with this Wednesday, the Eurozone-wide figure expected to remain at -0.2% but with the core CPI reading set to slip from 0.8% to 0.7% month-on-month.
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