European stock momentum fizzles out
The early momentum seen in European stocks on Tuesday seemingly petered out during the morning’s trading session.
The pan-European Stoxx 600 was up just 0.1% by mid-morning, having pared opening gains of around 0.5%. Mining stocks added 1.1% to lead gains while autos fell 0.7%.
Stocks on the move: Ocado up 4%, Dowlais Group down 7%
Shares of British online grocer Ocado climbed 4% in early trade to lead the Stoxx 600. The company’s first robotic warehouse in Asia, built for Japanese partner Aeon, went live on Monday.
At the bottom of the European blue chip index, British powder metallurgy company Dowlais Group fell more than 7% after Citi initiated its coverage of the stock with a “sell” rating.
— Elliot Smith
UK wage growth equals record high, piling pressure on Bank of England
LONDON, ENGLAND – JANUARY 16: Protestors from a range of different trade unions attend a rally against UK government plans to restrict the ability of public sector workers to strike are seen outside Downing Street on January 16, 2023 in London, England. (Photo by Guy Smallman/Getty Images)
Guy Smallman | Getty Images News | Getty Images
Wages excluding bonuses in the U.K. grew at their joint-fastest rate on record in the three months to May, rising by 7.3% from the same period last year, the Office for National Statistics revealed Tuesday.
The country’s tight labor market showed signs of easing as the unemployment rate rose unexpectedly from 3.8% to 4% in the three months to April, while vacancies continued to fall. The employment rate rose to 7.6% on the back of an increase in part-time employment.
The economic inactivity rate declined from the previous quarter to 20.8%, continuing a recent downward trend.
Stuart Cole, chief macro economist at Equiti Capital, said the Bank of England would be satisfied with the fall in payrolled employees and rise in unemployment claimants, which suggest the labor market is finally beginning to shed jobs.
However, he said the…
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