The FTSE 100 is almost flat as UK job vacancies hit a record high

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UK blue chip index recovers after raising concern about China’s slowing economic performance

FTSE 100 down just over 1 point BHP better after merger news Future bolstered by takeover at 9.49 am: Situation in Afghanistan heightens global concerns

There were enough global issues for markets to actually worry about, but the Taliban’s takeover of Afghanistan is another issue to add to the list.

So far there has been little immediate impact but the long-term events in Kabul could have repercussions.

Nigel Green, CEO of DeVere Financial Advisors Group, said: “Despite the news from Afghanistan, an immediate shock wave in global stock markets is unlikely.

Investors are currently focusing more on other key factors that can affect returns.

“These include the delta variant repercussions of Covid, concerns about peak earnings, disappointing Chinese economic data, slowing growth, and the release of the minutes of the last meeting of the Federal Reserve this week which could signal a shift in policy.”

However, the major geopolitical turmoil caused by the Taliban’s effective seizure of power will surely add to investors’ growing list of global issues to track as it could have long-term effects on the markets.

There will be questions related to stability in the Middle East, the global influence and increasing pressure of the United States [US president Joe] Biden, the potential for increased international terrorist threats, and the growing dominance of the Chinese renminbi.”

9.11 a.m.: Just Eat’s upbeat comments escalate

One of the key points from the job data is the high number of vacancies.

Jennifer Beckwith, Head of Employment at CBI, said: “With employment rising and unemployment declining, the labor market is showing further signs of recovery.

However, with the number of job vacancies at a record high, employers are concerned that staff shortages are hampering their ability to grow and support the country’s broader economic recovery.

“Recent changes in self-isolation mean companies can finally continue to operate as normal, even if short-term absenteeism remains a concern for sectors that depend on young workers waiting for their second vaccine.

“A broader testing and release plan must be implemented so that self-isolation remains properly targeting those who risk spreading the virus.”

Back in the market, the FTSE 100 has recovered most of its early losses, and is now almost flat.

The index fell only 1.43 points at 7,152.55.

() Continues to provide support after reports of merging its oil assets with Woodside Petroleum’s assets.

(,) is on the way, too. Its shares rose 1.08% to 6,197 BN after it said its losses would have peaked in the first half.

8.35 am: China slowdown fears persist

Concerns about an economic slowdown in China, the engine of global growth, continued to hamper global stock markets on Tuesday.

The FTSE 100 was down 27 points at 7,127.26 following the latest local jobs report, which was slightly better than expected.

The UK unemployment rate fell to 4.7% in the last quarter from 4.8% previously, compared to expectations that the number would remain flat.

According to the Office for National Statistics, the number of employed people rose again, by 182 thousand to 28.9 million, but remained 201 thousand below pre-pandemic levels. Meanwhile, job vacancies rose to a record 953,000.

said Richard Hunter, Head of Markets at Interactive Investor.

The big driver of the day on FTSE was miner BHP (), which confirmed it was in talks to separate its oil assets in a deal that would merge them with those of Australian giant Woodside Petroleum. BHP shares opened nearly 9% higher.

In the FTSE 250, publisher Future() gave up most of its gains a day after unveiling a £300m takeover of rival Dennis. It fell 4% early on.

6.50 a.m.: FTSE 100 is set to open in the red

The FTSE 100 is expected to extend losses on Tuesday as concerns about a slowdown in China outstripped the recovery on Wall Street overnight.

London’s main stock index is expected to drop another 10 points, according to spread betting platform IG, after closing 64 points at 7,153 at the start of the week.

After initially continuing in negative atmospheres in Asia and Europe, US stocks struggled to cut losses and ended with the Dow Jones climbing back into the green and the S&P 500 hitting another record, while the tech-backed Nasdaq fell 0.2%.

With some disappointing Chinese data being the catalyst for a weak start to the week, the main focus today will be on more macro numbers, with UK unemployment numbers and US retail sales providing the tea leaf for today.

The dominant theme in the markets is caution, but “balanced by an irresistible desire to buy the dip,” says Jeffrey Haley, a market analyst at Oanda, with net results that “across multiple asset classes, markets are nervously moving at once.”

Looking at the UK labor market, as we will be this morning, the unemployment rate is expected to remain at 4.8% for the month of July, but the overall picture was improving and optimists about the labor market were at their last meeting, to adjust their unemployment forecast to 5.2% for this year, then It drops to 4.7% in the second quarter of 2022.

The average claimant count recovered from 7.2% in March to 5.8% in June, as businesses continue to reopen, with monthly claims expected to decline by another 84,000 from 115K in June.

However, it is worth watching the fluctuation in the numbers.

“Now that the furlough scheme is starting to fade and companies have to contribute more to the scheme, we can start to see more convergence between the monthly claim numbers and the ILO measure of unemployment. This may increase the ILO scale, as distressed businesses decide Allowing any remaining employees to go, indicating that the next few months could be tough for the job market,” Hewson says.

As for US retail, he says these things could go either way.

“It was very difficult to predict these numbers this year, up one month and down the next. In June, we were expected to see a decline of -0.5% and we ended up with a gain of 0.6%.”

The market reaction could also be interesting, with Hewson noting that Wall Street is able to shrug off most negative news, but recent data “shows that some parts of the US economy are experiencing a crisis of confidence.”

The reaction to the sharp drop in University of Michigan confidence on Friday to its lowest level in ten years was in sharp contrast to levels of broader US consumer confidence which in July saw a return to levels last seen before the pandemic, a number lower than three years ago. weeks.

“They can’t be both right,” he added.

About the markets

Pound – down 0.1% to $1,383

Oil – Brent crude rose 0.1% to $69.56 a barrel

Gold – up 0.2% at $1,791.1 an ounce

Bitcoin – down 2.7% (change over 24 hours) to $46252.3

6.50 a.m.: Early Markets – Asia/Australia

Shares in the Asia-Pacific region fell on Tuesday, with Chinese internet shares in Hong Kong plunging again after China’s market regulator released draft rules aimed at halting unfair competition on the internet.

The Shanghai Composite Index is down 1.29% and the Hang Seng Index in Hong Kong is down 1.54%.

In Japan, the Nikkei 225 is down 0.08% while the Kospi in South Korea is down 0.77%.

Shares in Australia fell, with the S&P/ASX 200 Index trading 0.88% lower.

Read our ASX report here

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