UK equities experienced a significant downturn on Tuesday as investors anticipated the forthcoming interest rate decisions from the Federal Reserve and the Bank of England.
In terms of economic data, the Office for National Statistics reported that the UK's unemployment rate remained constant over the three months leading up to October. The rate held steady at 4.3 percent for the period from August to October, aligning with market expectations.
Excluding bonuses, the annual growth in average earnings was reported at 5.2 percent, surpassing economists' predictions of 5.0 percent. This data reinforces the belief that the Bank of England is likely to refrain from lowering interest rates in their meeting on Thursday.
For the 29th consecutive period, the number of job vacancies decreased. Estimates showed vacancies declined by 31,000, reaching 818,000 for the period from September to November.
The FTSE 100 index, the benchmark for UK equities, fell by 50 points or 0.6 percent, settling at 8,212. This follows a half-percent decline noted on the previous day.
Energy sector stocks suffered as well, with BP Plc dropping by approximately 1 percent and Shell decreasing by 1.6 percent amid ongoing losses in crude oil prices due to concerns over demand in China.
Bunzl's shares plunged by 4.5 percent after the company, a leading distributor of business supplies, announced that persistent deflation, particularly in continental Europe, is expected to slightly impact its annual profits.
Meanwhile, Capita saw a sharp decline with shares tumbling 8 percent after the outsourcing company reported an eight percent drop in revenue over the first 11 months of the year.
The material has been provided by InstaForex Company -
www.instaforex.com
