LONDON MARKETS: London Markets Rally After Lowest Unemployment In 45 Years
May 14 2019 - 07:09AM
Dow Jones News
By Dave Morris
London equities were on a tear on the heels of Monday's sharp
declines, as the U.K. reported the lowest unemployment figures in
45 years.
How did markets perform?
The U.K.'s FTSE 100 jumped 0.9% to 7,225.3 on Tuesday, more than
erasing Monday's loss of 0.6%.
The pound was 0.1% lower at $1.2949. On Monday it was down
0.4%.
What's moving the markets?
The U.K.'s unemployment rate fell to its lowest level since 1974
(http://www.marketwatch.com/story/uk-jobless-rate-hits-lowest-since-1974-2019-05-14).
The jobless rate in the first quarter of 2019 was 3.8% according to
the Office for National Statistics, which was less than predicted
at 3.9%.
There was little optimism on U.S.-China trade talks, after China
announced up to $60 billion in fresh tariffs in retaliation for
those announced by U.S. President Donald Trump earlier this month.
Trump said that the success or failure of the talks could be
assessed in three to four weeks, though investors may interpret the
statement as an attempt to jawbone the market back higher.
Which stocks are active?
Metro Bank PLC (MTRO.LN) shares rebounded 6.5%. They plunged
nearly 11% Monday after the FT reported the challenger bank was
planning to sell over GBP1 billion worth of the loan book
(https://www.ft.com/content/0cf6b3a0-7255-11e9-bf5c-6eeb837566c5)
at the center of controversy over an accounting error. The shares
remain down 70% on the year.
Vodafone Group PLC (VOD.LN) was down after loss as its dividend
cut, which was expected after media reports indicated it could be
slashed by 50%, came in at 40% instead
(http://www.marketwatch.com/story/vodafone-cuts-dividend-after-swinging-to-2019-loss-2019-05-14).
Shares swooned 5.2% Monday, and dipped 1.3% Tuesday.
(END) Dow Jones Newswires
May 14, 2019 07:54 ET (11:54 GMT)
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