(Sharecast News) - London's FTSE 100 powered to a new record high on Tuesday as the export-oriented stocks were boosted by a weaker pound following the latest UK labour market data.
The FTSE 100 settled 0.7% higher at 10,544.97, topping the previous day's record high of 10,473.69, rising for the third straight day.
Markets across the rest of Europe also gained, rising by a similar amount in Frankfurt, Paris and Zurich, while US stocks opened mixed following the Presidents' Day holiday as concerns about valuations in the AI sector continued to dampen sentiment on Wall Street.
Figures released earlier by the Office for National Statistics showed the UK unemployment rate unexpectedly rose to 5.2% in the three months to December, from 5.1% previously, hitting its highest level in nearly five years in December.
At the same time, earnings growth also eased, with basic pay excluding bonuses up 4.2%, down from 4.4% previously, adding to speculation that the Bank of England could follow up with a rate cut next month amid ongoing disinflationary trends.
The data also showed that payrolled employees fell by 121,000 between December 2024 and December 2025, and by 6,000 between November 2025 and December 2025. The early estimate of payrolled employees for January 2026 showed a 134,000 decline on the year, and an 11,000 drop on the month, to 30.3 million.
The data saw the pound slide 0.7% against the US dollar, falling to 1.3538, closing in on its lowest level.
"The gloomy picture painted by recent UK growth figures and today's evidence of a lacklustre jobs market has increased the likelihood that the Bank of England will cut rates at the next meeting in March. It has also increased expectation that rates could reach as low as 3% by the end of the year," said Danni Hewson, AJ Bell head of financial analysis.
Housebuilders gain; IHG falls after results
Rate-sensitive housebuilders Barratt and Persimmon were high risers as the latest UK jobs data boosted expectations of a rate cut in March.
Stocks that were caught up in the recent selloff fuelled by worries about AI disruption were also among the risers, with Relx, Pearson, Experian and Informa all higher.
Copper miner Antofagasta slumped despite reporting strong full-year topline growth and delivering record underlying earnings, driven by increased commodity prices and higher sales volumes.
Miners in general were weaker as copper prices fell, with Anglo American and Glencore also down.
InterContinental Hotels was in the red despite reporting a rise in full-year operating profit and revenue, hiking its dividend and announcing a new $950m share buyback, amid strength in the EMEEA region.
On the FTSE 250, Raspberry Pi surged with traders citing a post on social media platform X suggesting the low-cost computer board could be used with AI tools.
Market Movers
FTSE 100 (UKX) 10,544.97 0.68%
FTSE 250 (MCX) 23,548.72 0.74%
techMARK (TASX) 6,104.88 0.78%
FTSE 100 - Risers
Smurfit Westrock (DI) (SWR) 3,738.00p 3.95%
Coca-Cola Europacific Partners (DI) (CCEP) 7,690.00p 3.50%
Barratt Redrow (BTRW) 385.60p 3.13%
Airtel Africa (AAF) 346.60p 3.09%
Pearson (PSON) 929.80p 2.85%
Compass Group (CPG) 2,111.00p 2.83%
Barclays (BARC) 473.95p 2.80%
British Land Company (BLND) 415.20p 2.52%
GSK (GSK) 2,239.00p 2.52%
Diploma (DPLM) 5,500.00p 2.52%
FTSE 100 - Fallers
Antofagasta (ANTO) 3,617.00p -3.44%
Metlen Energy & Metals (MTLN) 35.35p -2.62%
Weir Group (WEIR) 3,430.00p -2.28%
Anglo American (AAL) 3,499.00p -2.21%
Fresnillo (FRES) 3,734.00p -2.10%
Marks & Spencer Group (MKS) 394.80p -1.96%
3i Group (III) 3,430.00p -1.92%
CRH (CDI) (CRH) 9,052.00p -1.80%
Glencore (GLEN) 486.00p -1.40%
Flutter Entertainment (DI) (FLTR) 9,212.00p -1.37%
FTSE 250 - Risers
Raspberry PI Holdings (RPI) 415.00p 36.07%
SSP Group (SSPG) 201.20p 6.17%
Applied Nutrition (APN) 255.75p 5.90%
Sirius Real Estate Ltd. (SRE) 105.40p 4.36%
International Workplace Group (IWG) 223.20p 3.91%
Carnival (CCL) 2,408.00p 3.88%
Pinewood Technologies Group (PINE) 305.00p 3.74%
Mony Group (MONY) 149.50p 3.46%
TBC Bank Group (TBCG) 4,350.00p 2.84%
Trustpilot Group (TRST) 136.70p 2.78%
FTSE 250 - Fallers
Plus500 Ltd (DI) (PLUS) 4,470.00p -5.18%
Ceres Power Holdings (CWR) 300.20p -4.64%
Endeavour Mining (EDV) 4,510.00p -3.76%
Hochschild Mining (HOC) 683.00p -2.78%
Foresight Environmental Infrastructure Limited (FGEN) 67.30p -2.75%
AO World (AO.) 99.30p -2.65%
IntegraFin Holding (IHP) 329.50p -2.08%
SDCL Efficiency Income Trust (SEIT) 49.05p -1.90%
RTW Biotech Opportunities Ltd (RTW) 2.07p -1.90%
Rank Group (RNK) 90.00p -1.85%
82.48 (0.79%)
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