Ftse close_ footsie drops as trump enthusiasm wanes in london _ this is money

On currency markets, the pound had also turned lower by lunchtime, losing 0.2 per cent versus a rallying dollar at $1.2424, and down 0.1 per cent against the euro at €1.1605.

After yesterday’s surprise slip in UK headline CPI inflation, today’s data from the Office for National Statistics showed UK unemployment fell by 37,000 in the quarter to September to 1.6 million, the lowest since 2006, giving an unemployment rate of 4.8 per cent, down from 4.9 per cent previously.

And other data from the ONS showed that average earnings increased by 2.3 per cent in the year to October, unchanged from the previous month, and missing forecasts for a tick up to 2.4 per cent.

IG’s Mahony said: ‘The UK jobs market has shown widely differing signs of UK economic health this morning, with UK unemployment hitting the lowest level in almost 11-years, whilst claimants rose to a near four-year high.

But, he added: ‘Despite the sharp rise in claimants, the overall picture remains relatively rosy, with average earnings remaining remarkably elevated and stable by historical standards.’

Among equities, FTSE 100-listed engines maker Rolls-Royce shed 2.7 per cent, or 20.0p at 734.5p after it said its market outlook remained mixed and it is ramping up cost savings under its group-wide overhaul.

The group said it is set to deliver savings at the top end of its target to slash costs by between £150million to £200million, as it noted a further weakening in its business aviation unit and continuing woes in offshore oil and gas markets for marine, where its order book remains ‘very weak’.

Housebuilder Barratt Developments also remained a big FTSE 100 faller, shedding 3.4 per cent, or 16.3p at 466.6p after cautioning that the housing market was becoming more challenging due to Brexit, especially in London, even though it saw its sales rise by 4.3 per cent in July.

And blue chip real estate group British Land was also weak, dropping 3.1 per cent, or 18.5p at 588.0p as although it posted higher first half profits it said it expects to proceed more cautiously in property development as it noted a change in the behaviour of markets since the Brexit vote.

But on the upside, utility Severn Trent was a FTSE 100 gainer, adding 1.0 per cent, or 22p at 2,161p after it agreed to buy water service provider Dee Valley Group for about £78.5m.

Insurer Prudential was also in demand, gaining 1.4 per cent, or 20.5p at 1,543.5p after reporting a 19 per cent jump in new business profit for the first nine months of the year and saying it plans to boost its dividend by 5 per cent a year.

10.00: The Footsie stayed weak as the morning session progressed, giving back some of this week’s rally, as the pound remained slightly firmer with investors digesting some mixed UK unemployment and average earnings data.

Around mid morning, the FTSE 100 index was down 17.1 points, or 0.3 per cent at 6,775.6, having closed 39.56 points higher yesterday as oil prices surged.

The weakness came even though US blue chips closed at fresh record highs again overnight, while Asian stocks also rose today after recent falls thanks to a pause in both the sell-off in global bonds and the sharp rise in the dollar which has followed Donald Trump’s victory in last week’s US presidential election.

James Hughes, Chief Market Analyst at GKFX.com, said: ‘With uncertainty over the Brexit and the bill that will be put to parliament regarding article 50 the unemployment readings will be a key tool in the promoting the positivity around Brexit.

‘Today’s solid number will be seen as another example of Brexit benefitting Britain, however in truth Brexit has no bearing on this reading. Gas efficient cars 2016 There is nowhere near enough data for us to be saying that Brexit is good for jobs in the UK, as we still haven’t left the EU.

He added: ‘Initial fear over what Brexit may mean may have caused a brief period of uncertainty in the markets, however today’s reading is the more the continued progression of an improving economy in the UK rather than a reaction to the referendum decision. Electricity worksheets for grade 1 We must still take this number for what it is and that is a strong reading in an ever improving UK economy.’

There will also be some key US data released this afternoon, including the October Producer Prices index, Industrial and Manufacturing Production, and the latest NAHB Housing Market Index.

The weekly DOE Crude Oil Inventories will be important as well after yesterday’s American Petroleum Institute data showed a larger than expected build.

In early trade today, oil prices modestly extended yesterday’s strong gains, shrugging aside that unexpected build in US crude stocks, with the focus still on a key Opec meeting at the end of this month amid hopes of moves to curb oversupply issues

Among equities, housebuilder Barratt Developments was a FTSE 100 faller, shedding 2.3 per cent, or 11.0p at 471.9p after cautioning that the housing market was becoming more challenging due to Brexit, especially in London, even though it saw its sales rise by 4.3 per cent in July.

Blue chip real estate group British Land was also weak, down 0.9 per cent, or 5.5p at 601.0p as although it posted higher first half profits it said it expects to proceed more cautiously in property development as it noted a change in the behaviour of markets since the Brexit vote.

And engines maker Rolls-Royce shed 2.2 per cent, or 16.5p at 738.0p as it said its market outlook remained mixed and it is ramping up cost savings under its group-wide overhaul.

The group said it is set to deliver savings at the top end of its target to slash costs by between £150million to £200million, as it noted a further weakening in its business aviation business and continuing woes in offshore oil and gas markets for marine, where its order book remains ‘very weak’.

But on the upside, utility Severn Trent was the top FTSE 100 gainer, adding 2.5 per cent, or 54p at 2,193p after it agreed to buy water service provider Dee Valley Group for about £78.5m.

Insurer Prudential was also in demand, gaining 1.5 per cent, or 22.5p at 1,545.5p after reporting a 19 per cent jump in new business profit for the first nine months of the year and saying it plans to boost its dividend by 5 per cent a year.

On the second line, electronic components distributor Electrocomponents jumped 2.7 per cent, or 9.9p higher to 374.9p after broker HSBC raised its rating on the stock to buy.

08.35: The Footsie edged lower in early trading, giving back some of this week’s rally as the pound firmed slightly in the face of a pause by the dollar, with investors awaiting UK unemployment and average earnings data to provide direction.

In opening deals, the FTSE 100 index was down 7.1 points, or 0.1 per cent at 6,785.6, having closed 39.56 points higher yesterday as oil prices surged amid fresh speculation about an Opec deal to cut production levels.

US blue chips closed at fresh record highs again overnight as the post-US election rally continued, and Asian stocks also rose today, steadying after recent falls thanks to a pause in both the sell-off in global bonds and the sharp rise in the dollar following Donald Trump’s surprise victory.

Up: US blue chips closed at fresh record highs again overnight and Asian stocks also rose today thanks to a pause in both the sell-off in global bonds and the sharp rise in the dollar

On currency markets, after falls yesterday, sterling ticked higher today, adding 0.3 per cent versus a slightly easier dollar at $1.2489, and adding 0.3 per cent against the euro at €1.1644, with some more key UK data eyed after yesterday’s inflation surprise.

The UK headline unemployment rate is expected to be unchanged at 4.9 per cent, although forecasts are for the overall change in Employment to have slowed. Electricity 80s song Wages growth is expected to increase marginally to 2.4 per cent, up from 2.3 per cent previously.

Connor Campbell, Financial Analyst at Spreadex, said: ‘Despite the potential lack of excitement both the FTSE and the sterling seem unwilling to show their hand just yet.’

He added: ‘If the jobs report estimates prove to be accurate that may well work more in the pound’s favour than the FTSE’s, assuming that the reactionary trends seen before the US election still hold up.’

There will also be some key US data released this afternoon, including the October Producer Prices index, Industrial and Manufacturing Production, and the latest NAHB Housing Market Index.

The weekly DOE Crude Oil Inventories will also be important after yesterday’s American Petroleum Institute data showed a larger than expected build.

In early trade today, oil prices modestly extended yesterday’s strong gains, shrugging aside that unexpected build in US crude stocks, with the focus still on a key Opec meeting at the end of this month amid hopes of moves to curb oversupply issues

ROLLS-ROYCE – The engines maker said it would deliver costs savings at the top end of its £150million to £200million target as it restructures to become more efficient.

BARRATT DEVELOPMENTS –Britain’s biggest housebuilder by volume said it was on track to deliver a key financial target this year although a cooling market in London meant it was having to look again at some prices.

PRUDENTIAL – The insurer has reported a 19 per cent rise in new business profit for the first nine months of the year, driven mainly by strong performance at its Asian business.

ANTOFAGASTA – The Chilean miner’s chief executive officer Ivan Arriagada has said he expects the global copper market to be in a ‘slight’ surplus in 2017 before demand starts to outpace supply, according to Reuters.

MORRISONS – The supermarket group has further developed its wholesale relationship with Amazon, launching a store pick service for the online retailer’s customers.

BRITISH LAND – The real estate group noted caution amongst occupiers in its Office unit since June’s Brexit vote, as it reported a swing to a first half loss of £205million due to a valuation deficit.

SEVERN TRENT – The water utility has agreed to acquire smaller UK-listed water company Dee Valley Group for £78.5million, trumping a previous offer made for the firm.

AGGREKO – The temporary power generators provider said its anticipates its profit will be broadly in line with market expectations for 2016 despite challenging conditions in its markets.

SPEEDY HIRE – The equipment rental company said it sees full year results ahead of its expectations as cost-cutting measures and asset disposals boosted first half profit.