The FTSE 100 edged higher on Tuesday, but ended well off its earlier heights, after a surprise rise in unemployment and as US bond yields hit their highest mark since 2007.
Market Performance
The FTSE 100 closed up 6.80 points, 0.1%, at 10,330.55. It had earlier traded as high as 10,408.36. The FTSE 250 ended down 43.73 points, 0.2%, at 22,567.97, and the AIM All-Share fell 6.55 points, 0.8%, at 793.62.
In European equity markets on Tuesday, the CAC 40 in Paris ended down 0.1%, and the DAX 40 in Frankfurt advanced 0.4%. In New York, the Dow Jones Industrial Average was down 0.5%, the S&P 500 fell 0.7%, and the Nasdaq Composite was 1.1% lower.
Bond Yields and Geopolitical Tensions
The yield on the US 10-year Treasury widened to 4.68% on Tuesday from 4.61% on Monday. The yield on the US 30-year Treasury stretched to 5.18% from 5.14%, its highest level since 2007, amid rising worries over inflation due to the Middle East war. Tensions remained high, although US President Donald Trump said on Tuesday that he stopped a purported attack plan at the urging of Gulf Arab allies. Meanwhile, Iran’s army warned that it would “open new fronts” against the US if it resumes attacks.
Brent crude for July delivery was trading at 110.72 dollars a barrel on Tuesday, slightly down from 110.80 dollars at the time of the equities close in London on Monday.
UK Jobs Data
Investors weighed figures which showed the UK unemployment rate moved back to 5% in March, with uncertainty weighing on hiring. The Office for National Statistics said the unemployment rate rose back to 5.0% in the three months to March, from 4.9% in the period to February. According to consensus cited by FXStreet, it had been expected to stay at 4.9%.
Average earnings, including bonuses, rose 4.1% on-year in the three months to March, picking up speed from 3.9% in February and topping consensus of a slowdown to 3.8%. For regular earnings, pay growth cooled to 3.4% in the three months to March, from 3.6% in the three-month stretch to February, in line with consensus.
ING assessed the jobs data as “dreadful”. “The latest UK jobs report, which features rising unemployment, sharply lower payrolls and tumbling wage growth, is a reminder that the economy is much less susceptible to ‘second round’ effects from the incoming energy shock. We’re still forecasting a rate hike in June, but that is far from guaranteed,” ING analysts said.
Deutsche Bank said: “Unfortunately, the labour market story won’t get any better over the coming months. Geopolitical uncertainty will now be amplified by domestic political uncertainty. Questions around the economic outlook will grow – including tax speculation. And we expect firms to limit any hiring over the coming months as cost pressures mount.”
Standard Chartered Job Cuts
There was more gloomy jobs news from lender Standard Chartered, which said it will reduce corporate functions roles by more than 15% by 2030. According to its 2025 annual report, corporate function roles include employees in human resources, corporate affairs and supply chain management. At the end of 2025, the lender had 52,271 employees in back-office operations, suggesting job cuts of at least 7,800. The news came as the Asia-focused bank unveiled new medium-term financial targets, including a return on tangible equity of more than 15% in 2028, rising to around 18% in 2030. Shares fell 2.2%.
Mining and Other Movers
Weighing on the FTSE 100 were weak miners amid soft metals prices. Gold traded at 4,502.96 dollars an ounce on Tuesday, down slightly from 4,541.71 dollars on Monday. Silver fell 4.1% and copper by 2.0%. Antofagasta, Fresnillo, Endeavour Mining and Anglo American were prominent fallers, down 3.5%, 4.7%, 3.7% and 3.4% respectively.
On the up, IG Group surged 11% as it upgraded its guidance and reported strong first quarter revenue growth. The London-based online trading platform raised its 2026 guidance to organic total revenue growth of between 10% and 15% from the 2025 base of around £1.10 billion, ahead of prior guidance of high single-digit growth. Diploma climbed 3.2% as it upped guidance once again. The London-based supplier of technical products and services now sees organic revenue rising 12% in the full year, the guidance boosted from 9%. In March, Diploma lifted its guidance from 6%.
On the FTSE 250, Currys was the star performer, soaring 15% as it too took full-year guidance upwards. The London-based electrical and telecommunications retailer now expects adjusted pre-tax profit growth of 18% to £191 million for the financial year ended May 2, ahead of a prior guidance range of £180 million to £190 million. In the financial year to May 3, 2025, Currys posted adjusted pre-tax profit of £162 million. But Princes Group sank 13%, after it said chief executive Simon Harrison will step down next month “to pursue a new opportunity”.
Biggest Risers and Fallers
The biggest risers on the FTSE 100 were IG Group, up 166.0p at 1,742.0p, Airtel Africa, up 21.2p at 334.0p, 3i Group, up 122.0p at 2,204.0p, Burberry, up 35.0p at 1,118.0p and Diploma, up 210.0p at 6,835.0p. The biggest fallers on the FTSE 100 were Fresnillo, down 140.0p at 3,193.0p, Compass Group, down 1.25p at 31.4p, Antofagasta, down 137.0p at 3,649.0p, Anglo American, down 124.0p at 3,657.0p and Endeavour Mining, down 136.0p at 4,370.0p.
Outlook
Wednesday’s global economic calendar has eurozone CPI figures, UK CPI and PPI data, plus the minutes of the April Federal Open Market Committee meeting. Wednesday’s local corporate calendar has full-year results from retailer Marks & Spencer, property investor British Land, and water utility Severn Trent.
