Wage growth closes the gap with inflation but sterling fails to gain


The pound’s standing following today’s wage increase has dissipated this evening with Sterling’s 0.1pc decline against the dollar for the trading day.

The ONS’ numbers published this morning noted that wage growth grew by 2.1pc, sealing the gap with inflation that is putting pressure on families in the UK. The findings also revealed that unemployment rate dropped to 4.4pc, its lowest rate since 1975.

European equities have remained to claw back territory lost helping the FTSE 100 report a 0.7pc increase.

Zinc, scoring a 10-year high raised global miner Glencore to the top of the blue-chip index whereas Admiral has suffered most as gains were struck by growing personal injury costs.

David Madden, a representative at CMC Markets, said this of today’s play:

“European stock markets remain strong as the bullish sentiment that returned to the markets at the beginning of the week is still with us. The upward move in stocks has been attributed to the easing of political tensions between the US and North Korea.

“We have recouped a lot of the ground that was lost because of the tensions that escalated last week, but we have not fully recovered. The rate at which the markets are gaining ground has cooled somewhat, so it may take us a while to get back to pre ‘fire and fury’ levels.”