The FTSE 100 fell on Tuesday, weighed down by declines in defence and oil stocks, despite some stronger private sector data in the UK.
The FTSE 100 index closed down 0.7% at 9,684.79. The FTSE 250 ended lower at 22,040.98, while the AIM All-Share closed up at 749.41.
Economic data offered a mixed picture. The Office for National Statistics reported the UK unemployment rate rose to 5.1% in the three months to October, up from 5.0% in September, marking the highest level since 2021. Employment declined slightly and wage growth moderated over the same period.
Meanwhile, the UK private sector continued to show resilience. The flash purchasing managers’ composite output index rose to 52.1 in December from 51.2 in November, outperforming analyst expectations of 51.4. The flash services business activity index also beat forecasts, climbing to 52.1 from 51.3 in November.
Oil majors BP and Shell dragged the FTSE 100 lower, falling 3.4% and 2.7% respectively. Defence stocks also fell, with Babcock International down 3.6% and BAE Systems 1.7% lower.
On the FTSE 250, IG climbed 8.5% after extending its share buyback following encouraging trading. Goodwin fell 11%, despite reporting pretax profit more than doubled in the half-year to the end of October.
US equities were lower at the London close. The Dow Jones Industrial Average and S&P 500 were down 0.5%, and the Nasdaq Composite fell 0.4%.
Data from the Bureau of Labor Statistics showed nonfarm payrolls rose 64,000 in November, beating forecasts, while the unemployment rate increased to 4.6%, the highest since September 2021.