skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more

Join

Both including and excluding bonuses the average earnings index fell to 2.6% in its most recent reading; combine that with rising inflation and real world wage growth is at a 2 year low. Elsewhere the claimant count change dropped a whopping 42.4k in January to leave the employment and unemployment rates at a record high and 11 year low respectively. Yet those figures are severely undermined by the aforementioned dip in wage growth, suggesting the quantity of jobs being created isn’t matched by their quality.

Overall the mixed nature of the jobs report meant the morning’s trading trends weren’t significantly disrupted. The FTSE continued to push around 20 points higher, struggling to break through 7300 with any force, with the pound slipping 0.3% against the dollar while sitting flat against the euro.

Looking ahead to this afternoon and there is plenty more data to come before the US session gets underway. The most important figure is inflation, which is set to remain at 0.3%; retail sales, meanwhile, are likely to fall from 0.6% to 0.1% month-on-month as consumers deal with the post-Christmas squeeze. The Empire State manufacturing index is then set to climb from 6.5 to 7.2, with industrial production forecast to drop to 0.1% from 0.8% in January. The prospect of all this has left the Dow Jones looking a bit meek before the bell, though it is still set to open at yet another 20500-plus high.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Back To Top