13.02.202409:15:00UTC+00FTSE 100 Dips As Pound Gains On Robust Employment Data

On Tuesday, UK stocks took a tumble and the pound strengthened in relation to major currencies following the announcement of a decrease in the UK's unemployment rate during the last quarter. Data from the Office for National Statistics indicated a drop in the International Labour Organisation (ILO) unemployment rate, from 3.9% in the third quarter to 3.8% in the fourth. This figure was also lower than economists' prediction of 4.0%.

From October to December, the yearly average earnings inclusive of bonuses saw a slower growth of 5.8%, compared to the 6.7% increase recorded in November. However, experts had anticipated this earnings growth to decrease further to 5.6%.

The key FTSE 100 fell by 11 points or 0.2%, settling at 7,562, a slight decrease from its value on Monday.

In the travel sector, TUI Group saw a 2.6% increase after reporting a smaller loss for the first quarter, alongside a rise in revenues due to heightened demand and enhanced pricing and rates. TUI Group also reiterated its guidance for the full year.

On the other hand, Cairn Homes dropped by around 1%. The Irish housebuilder revealed the appointment of Richard Ball as its new CFO, effective from April 10.