FTSE edges into the green despite stubborn UK wage inflation

The FTSE 100 returned to making gains on Tuesday but finished just short of a record close price.

The index’s soaring increases from last week have mellowed significantly but trading was still positive despite concerns over stubborn UK wage inflation data from the Office for National Statistics.

London’s top index finished 13.14 points, or 0.16%, higher to end the day at 8,428.13.

The German Dax index was down 0.09% at the close and the Cac 40 in France ended up 0.2%.

Joshua Mahoney, chief market analyst at Scope Markets, said: “The FTSE 100 provides one bright spot within an otherwise downbeat session in Europe, with Vodafone and Ocado the two dominant gainers.

“European markets have also had to contend with the latest UK jobs report, with the Bank of England likely concerned at the combination of stubbornly high wages and the joint highest unemployment rate in over two years.”

Sterling started in weak fashion on the back of the rise in unemployment and suggestions from the Bank of England’s Huw Pill that it is “not unreasonable” to expect the Bank to consider cutting interest rates over the summer.

However, it swung higher after the weakness in the dollar caused by an unexpected rise in US producer prices.

The pound was up 0.22% at 1.258 US dollars and was flat at 1.163 euros at market close in London.

In company news, Vodafone shares climbed after telecommunications firm returned to growth across its key markets as it presses on with a turnaround process and waits for a decision from regulators on a potential merger with Three UK.

It told investors it was making progress on a restructuring plan which has included selling off its underperforming Italian and Spanish businesses and cutting thousands of jobs.

As a result, the company saw shares improve by 4.7% to 73.28p.

Elsewhere, Anglo American dipped in value again after mining firm revealed plans to break up its operations and slow development at its £7 billion North Yorkshire fertiliser mine.

The group – which rebuffed a £34 billion takeover move by BHP on Monday – confirmed plans to sell or demerge its De Beers diamond business, Anglo American platinum and coking coal assets.

Shares in the company were down 3.23% to 2,619.5p at the close of trading.

Holiday firm On The Beach was a notable faller after it revealed a “more challenging” value holiday market amid cost-of-living pressures for customers.

Shares dipped by 14.4% to 143.4p as a result, despite the group revealing that overall revenues were 11% higher for the past half-year.

Software business IQGeo finished firmly higher after it became the latest London-listed firm targeted for a private equity takeover.

Shares rose by 16% to 470p after KKR struck a £316 million deal to take the company private.

The price of oil slipped on the back of the latest US inflation reading, while traders also digested Opec maintaining its demand forecast for the year.

A barrel of Brent crude oil was down by 1.2% to 82.35 US dollars as markets were closing in London.

The biggest risers on the FTSE 100 were Ocado, up 27.8p to 369.8p, Vodafone, up 3.3p to 73.28p, Glencore, up 17.1p to 492.5p, BT, up 3.25p to 112.2p, and St James’s Place, up 11.8p to 496.8p.

The biggest fallers on the FTSE 100 were Anglo American, down 87.5p to 2,619.5p, DCC, down 135p to 5,770p, Flutter Entertainment, down 315p to 15,875p, IAG, down 2.35p to 184.1p, and Shell, down 36p to 2,901p.