This morning, the blue-chip index was struggling for direction after the Office for National Statistics published data showing a surprise increase in the unemployment rate to 3.9% in Q1, while 3.8% was expected by economists. They also showed a 136,000 fall in employees between March and April, which is the first reduction since February 2021.

Headline wage growth, excluding bonuses, was slightly up to 6.7% year-on-year. Including bonuses, wage growth remained unchanged at 5.8%.

Although it raises the prospects of recession, the job data also shows that the BoE efforts to prevent an overheating of the economy are bearing fruits and that a pause in rate hikes becomes likelier.

Among stocks, Vodafone shares fell 4% after its new CEO Margherita Della Valle said the company’s performance has not been good enough and announced a turnaround plan, which includes cutting 11,000 jobs.

 

Things to read today:

Wells Fargo Agrees to Pay Shareholders $1 Billion to Settle Class-Action Suit (WSJ)

Paris Is Trying to Steal the UK’s Fintech Crown (Bloomberg)