Markets and pound fall on jobs figures

THE London markets and the pound both tumbled on a torrid day for UK traders after new figures revealed a surge in unemployment in the face of the pandemic.

Sentiment slid after the Office for National Statistics revealed a 138,000 jump in UK unemployment between June and August - the largest increase since summer 2009.

Global sentiment was also broadly lower as coronavirus cases continued to grow in mainland Europe. The FTSE 100 closed 31.67 points lower at 5,969.71 at the end of trading yesterday.

Connor Campbell, financial analyst at Spreadex, said: “After a rise in the UK’s unemployment rate, the FTSE 100 fell, returning to the sub-6,000 levels seen before last Thursday’s sharp rebound.

“Alongside Covid-19 worries and the vested interest all investors have in the US election, the UK also has Brexit to contend with, and tomorrow’s deal ‘deadline’.

“It appears that the big question is less whether an agreement will be reached by the 15th and more whether that Johnson-imposed end date will be strictly enforced.”

The combination of higher unemployment and caution over Brexit, despite Boris Johnson tell

31 The number of points the FTSE 100 dropped by yesterday

ing ministers there should be “no fear” over failing to secure a deal with the EU, pressed on the pound against the dollar.

The pound fell by 0.41% versus the US dollar at 1.297 but was up 0.19% against the euro at 1.104.

Europe’s other major markets saw traders spooked by the tightening of restrictions as politicians continue to attempt to thwart rising coronavirus case numbers.

The German Dax decreased by 1%, while the French Cac moved 0.74% lower. Across the Atlantic, the Dow Jones and S&P 500 both moved a touch lower as trading cooled following a strong session on Monday.

Back in the UK, supermarkets had a strong trading session, with Tesco, Morrisons and Sainsbury’s all making notable gains after new figures from Kantar revealed a 10.6% leap in grocery sales over the four weeks to October 4.

The biggest risers on the FTSE 100 were Scottish Mortgage Investment Trust, up 19p at 1,075p; SSE, up 22p at 1,348p; Experian, up 49p at 3,063p; and Tesco, up 3.3p at 222.4p.

The biggest fallers of the day were Rolls-Royce, down 11.75p at 183.1p; British Land, down 17.3p at 355.6p; Lloyds Group, down 1.2p at 26.87p; and Hargreaves Lansdown, down 64.5p at 1,477.5p.