London stocks edged higher in early trade on Tuesday as data showed that UK wages grew faster than expected in the three months to April.
At 0835 BST, the FTSE 100 was up 0.2% at 8,243.90.
According to the Office for National Statistics, total pay including bonuses rose 5.9% in the three months to April, coming in above expectations of 5.7% growth. Meanwhile, growth for the previous three-month period was revised up to 5.9% from 5.7%.
Average regular earnings which exclude bonuses grew by 6% during the three months to April, unchanged from the previous three months and versus expectations of 6.1% growth.
Adjusted for consumer price inflation, total pay including bonuses grew 2.7% in February to April. This marked the fastest rate of growth since July to September 2021.
The data showed that the unemployment rate increased to 4.4% in the three months to April from 4.3% in the previous three months.
The ONS said: “This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong.”
Ruth Gregory, deputy chief UK economist at Capital Economics, said: “Overall, the stickiness of wage growth may not stop the Bank from cutting interest rates for the first time in August, as we are forecasting, as long as other indicators such as pay settlements data and next week’s CPI inflation release show decent progress.”
In equity markets, housebuilders were on the rise amid reports the Conservatives will introduce a new £1bn scheme to help first-time buyers and allow them to buy a home with just a 5% deposit. It was understood that this will be available for properties under £400,000.
Persimmon, Taylor Wimpey and Berkeley all gained.
Hikma Pharmaceuticals jumped to the top of the FTSE 100 as Citi lifted its price target on the stock to 2,845p from 2,770p.
GSK was also in the black after saying it had initiated an appeal against the Delaware Superior Court’s recent decision to allow plaintiff expert testimony in the Zantac litigation case, claiming the ruling was inconsistent with previous applications of the Daubert standard.
It said an application had been filed to seek interlocutory review by the Delaware Supreme Court, with Pfizer, Sanofi and Boehringer Ingelheim also involved.
Aircraft and defence engineering specialist Senior rose after saying it had won 10-year production contracts worth $80m from Collins Aerospace to supply thrust reverser structural components for Boeing 787, Airbus A320neo and Airbus A220 aircraft.
Oxford Instruments surged after the industrial and scientific research tech group announced plans to simplify its corporate structure alongside full-year profits that came in ahead of expectations.
On the downside, heavily-weighted miners were the worst performers, with Rio Tinto, Glencore, Anglo American and Antofagasta all down.
Bus and train operator FirstGroup slid as it hiked its dividend by 45% after a substantial jump in annual profits, but said there were challenges ahead.
Market Movers
FTSE 100 (UKX) 8,243.90 0.19%
FTSE 250 (MCX) 20,515.76 0.34%
techMARK (TASX) 4,858.84 0.70%
FTSE 100 – Risers
Hikma Pharmaceuticals (HIK) 1,985.00p 2.85%
Convatec Group (CTEC) 251.00p 2.28%
Intermediate Capital Group (ICG) 2,292.00p 2.05%
Beazley (BEZ) 690.00p 1.92%
Persimmon (PSN) 1,472.00p 1.80%
Taylor Wimpey (TW.) 152.00p 1.60%
Rentokil Initial (RTO) 415.50p 1.51%
SSE (SSE) 1,813.50p 1.34%
Barratt Developments (BDEV) 508.40p 1.32%
Berkeley Group Holdings (The) (BKG) 5,245.00p 1.16%
FTSE 100 – Fallers
Rio Tinto (RIO) 5,251.00p -1.98%
Fresnillo (FRES) 552.50p -1.34%
Glencore (GLEN) 469.95p -1.23%
Anglo American (AAL) 2,345.00p -1.18%
Antofagasta (ANTO) 2,142.00p -0.79%
Burberry Group (BRBY) 1,014.00p -0.54%
British American Tobacco (BATS) 2,391.00p -0.46%
Flutter Entertainment (DI) (FLTR) 14,735.00p -0.37%
HSBC Holdings (HSBA) 691.40p -0.32%
Standard Chartered (STAN) 751.40p -0.24%
FTSE 250 – Risers
Oxford Instruments (OXIG) 2,720.00p 10.57%
SDCL Energy Efficiency Income Trust (SEIT) 69.70p 3.72%
4Imprint Group (FOUR) 6,090.00p 3.40%
Aston Martin Lagonda Global Holdings (AML) 160.80p 2.88%
Crest Nicholson Holdings (CRST) 248.20p 2.73%
PureTech Health (PRTC) 230.00p 2.68%
Apax Global Alpha Limited (APAX) 156.00p 2.50%
Close Brothers Group (CBG) 464.60p 2.43%
JTC (JTC) 907.00p 2.25%
AO World (AO.) 111.40p 2.20%
FTSE 250 – Fallers
Bridgepoint Group (Reg S) (BPT) 203.00p -3.79%
CMC Markets (CMCX) 257.00p -2.84%
Hochschild Mining (HOC) 177.40p -2.21%
Tyman (TYMN) 352.00p -2.09%
Bodycote (BOY) 714.00p -2.06%
Keller Group (KLR) 1,208.00p -1.95%
FirstGroup (FGP) 166.80p -1.59%
Helios Towers (HTWS) 124.80p -1.27%
Genuit Group (GEN) 436.50p -1.24%
Target Healthcare Reit Ltd (THRL) 76.20p -1.17%