(Sharecast News) - London stocks were still a touch firmer by midday on Tuesday as investors mulled the latest UK jobs data and awaited the outcome of US-Russia peace talks.
The FTSE 100 was up 0.1% at 8,780.38.
Figures released earlier by the Office for National Statistics showed that pay growth accelerated in the three months to December, while the unemployment rate was steady.
The unemployment rate was unchanged at 4.4%, versus expectations for it tick up to 4.5%.
Average earnings including bonuses rose by 6% on the year, up from 5.5% in November. Excluding bonuses, wages grew 5.9% - the fastest rate in eight months - up from 5.6%.
Liz McKeown, director of economic statistics at the ONS said, said: "Growth in pay, excluding bonuses, rose for a third consecutive time, with increases in both the private and public sector."
The figures also revealed an estimated 819,000 vacancies in November 2024 to January 2025, down by 9,000 from August to October 2024.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Today's UK wage data came in mixed - December's growth was slightly stronger than the economists had expected but fell short of the Bank of England's forecast.
"There'll be debate about whether this is a signal to worry about inflation again, but reading between the lines, this shouldn't hinder the Bank of England's plans for a gradual reduction in rates over 2025, with markets still anticipating a couple of cuts by year-end."
Investors were also keeping an eye out for the outcome of talks between the US and Russia over the Ukraine conflict, which are taking place in Saudi Arabia.
Joshua Mahony, analyst at Scope Markets, said: "The absence of both Ukraine and Europe in those talks say a lot about the US' perceived ability to simply strike a deal and impart that upon the parties most affected by that agreement. Zelensky has stated that he will not agree to a deal that does not involve the Ukrainians, while Europe are waking up to the notion of them having to support Ukraine in the absence of US involvement. A peace deal could provide the basis for lower commodity prices and lower military assistance to Ukraine.
"However, the benefits of a lower bill to fund Ukrainian war efforts soon fade once factoring in the clear requirement to build out the European military force and potential troops on the ground under any peace agreement. Nonetheless, peace in Europe does provide a bullish driver for the region and thus the success or failing of these talks will likely be reflected in equity valuations going forward."
In equity markets, Antofagasta rallied as the copper miner reported an 11% jump in full-year earnings before interest, tax, depreciation and amortisation and said demand for copper remained strong.
Glencore gained as Morgan Stanley upgraded shares of the miner to 'overweight' from 'equalweight' and said it was its new "top pick".
On the downside, BT Group slid after a downgrade to 'sell' from 'buy' at Citi, which cut its price target to 112p from 200p as it noted that Openreach was facing a revenue decline. Airtel Africa also lost ground after a downgrade to 'neutral' from 'buy' by the same outfit.
InterContinental Hotels was in the red despite posting a rise in full-year profits, lifting its dividend, and announcing a $900m share buyback programme and the acquisition of the Ruby brand for $116m.
BHP traded down as it slashed its dividend and reported a sharp fall in half-year profits as lower iron ore prices caused by weaker demand from China offset higher copper earnings.
Plus500 retreated even as it announced a $110m share buyback and hailed strong full-year results.
Market Movers
FTSE 100 (UKX) 8,780.38 0.14%
FTSE 250 (MCX) 20,894.00 -0.21%
techMARK (TASX) 4,792.32 0.23%
FTSE 100 - Risers
Antofagasta (ANTO) 1,881.00p 2.45%
Ashtead Group (AHT) 5,196.00p 1.64%
HSBC Holdings (HSBA) 895.30p 1.59%
International Consolidated Airlines Group SA (CDI) (IAG) 341.20p 1.52%
Melrose Industries (MRO) 653.00p 1.49%
Glencore (GLEN) 355.50p 1.46%
Barclays (BARC) 308.60p 1.38%
NATWEST GROUP (NWG) 445.00p 1.37%
Rolls-Royce Holdings (RR.) 643.00p 1.20%
Halma (HLMA) 2,981.00p 1.09%
FTSE 100 - Fallers
BT Group (BT.A) 142.65p -5.87%
Sainsbury (J) (SBRY) 253.80p -2.91%
InterContinental Hotels Group (IHG) 10,405.00p -2.71%
Tesco (TSCO) 387.00p -2.52%
Airtel Africa (AAF) 140.00p -2.10%
Severn Trent (SVT) 2,427.00p -1.86%
Centrica (CNA) 134.20p -1.58%
SSE (SSE) 1,473.50p -1.57%
Mondi (MNDI) 1,301.00p -1.40%
Rightmove (RMV) 664.40p -1.40%
FTSE 250 - Risers
Wood Group (John) (WG.) 27.98p 8.11%
QinetiQ Group (QQ.) 407.00p 3.83%
Hochschild Mining (HOC) 191.60p 3.12%
Assura (AGR) 43.60p 2.59%
North Atlantic Smaller Companies Inv Trust (NAS) 3,750.00p 2.46%
Future (FUTR) 989.50p 2.17%
Chemring Group (CHG) 355.00p 2.16%
Mony Group (MONY) 202.40p 1.86%
Fidelity China Special Situations (FCSS) 264.50p 1.73%
Bridgepoint Group (Reg S) (BPT) 394.80p 1.44%
FTSE 250 - Fallers
Plus500 Ltd (DI) (PLUS) 2,744.00p -4.19%
Watches of Switzerland Group (WOSG) 542.50p -2.43%
Pennon Group (PNN) 460.20p -2.25%
Drax Group (DRX) 614.00p -2.00%
Me Group International (MEGP) 225.50p -1.96%
Trainline (TRN) 351.60p -1.84%
Burberry Group (BRBY) 1,134.00p -1.82%
Trustpilot Group (TRST) 341.50p -1.59%
Tate & Lyle (TATE) 559.00p -1.58%
Genuit Group (GEN) 370.00p -1.46%
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