Must read: FTSE 100 higher with earnings in focus, UK unemployment, Bellway

GLOBAL MARKETS 

The FTSE 100 is staging gains alongside the DAX and CAC 40, while the pound is up against most major currencies. Spirax Group (LSE:SPX) has soared to the top of the UK blue-chip index, scoring double-digit percentage gains after the manufacturing company forecast stronger second-half sales growth. Persimmon (LSE:PSN) is also at the top of the FTSE 100 thanks to a positive read across from Bellway (LSE:BWY). 

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Asian markets were higher overnight with the Nikkei in Japan hitting a record high. The US and China have extended their tariff deadline by another 90 days until 10 November, helping to boost risk appetite. 

Stateside, futures are pointing to a mixed open as investors await the latest US inflation data. CPI is expected to increase by 0.2% in July down from 0.3% in June, driven by a drop in gasoline prices. Focus is on the Bureau of Labour Statistics (BLS), which publishes this data after Trump fired its head, Erika McEntarfer, after a weak US jobs report which he said was “rigged”. Trump has picked EJ Antoni, a right-wing think tank economist to replace her.

UK UNEMPLOYMENT RATE 

The UK unemployment rate remained at a four-year high of 4.7% in the three months to June, meeting analysts’ expectations. Wage growth also came in line with forecasts at 5% excluding bonuses year-on-year during the same period. Job vacancies fell by 44,000 on the quarter to 718,000 in May to July, representing consecutive quarterly declines every months for over three years. The hospitality and retail sectors have been hit hardest, however there has been a decline in opportunities across various industries.

Today’s figures echo other recent data to suggest a notable slowdown in the labour market. This week’s KMPC/REC data, the CIPD figures and the latest PMIs all point to a sluggish jobs picture.   

A weakening employment outlook was a big factor in last week’s Bank of England decision and today’s announcement provides further confirmation for rate setters and potentially provides support for further monetary loosening ahead.

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With a shaky domestic economy, global trade uncertainty, April’s minimum wage and national insurance increases and potential tax hikes in the Budget, businesses are expressing caution by refraining from taking on the additional fixed cost of extra staff hires where they can. Plus there is a lot of uncertainty around what the proliferation of artificial intelligence (AI) tools will mean for the jobs market. Wage growth looks set to soften and redundancies are likely to rise in the months ahead.

Sterling is trading higher against all major currencies this morning.

BELLWAY 

Bellway reported 8,749 housing completions in the year to the end of July, up from 7,654 year-on-year, and it is anticipating that figure to grow further to 9,200 homes in the current fiscal year 2026. Full-year housing revenue grew by 17% to over £2.76 billion. 

Bellway continues to show signs of momentum despite headwinds for the sector from elevated interest rates, which weigh on mortgage affordability and April’s increase in stamp duty. There is future uncertainty around the speed at which the Bank of England can loosen monetary policy, given the elevated inflationary backdrop, which is affecting consumer confidence and mortgage appetite. 

However, amid that backdrop, Bellway has delivered a solid update with 14% growth in housing completions and projected growth of a further 5% year-on-year.  

Despite a lacklustre share price performance over the past year, shares are reacting positively this morning, and analysts also remain optimistic with a majority of buy recommendations on the stock.