London stocks opened higher on Thursday, buoyed by UK labour market data that was less worrying than anticipated. While wage growth slowed and job vacancies fell, the numbers offered no fresh red flags for the economy.
The FTSE 100 gained 0.4% to 8,963.43 in early trade, with the FTSE 250 up 0.3% at 21,665.14. The AIM All-Share was flat.
Figures from the Office for National Statistics showed average weekly earnings grew 5.0% in the three months to May, slowing from 5.4% previously. Excluding bonuses, wage growth eased to 5.0% from 5.3%. The UK jobless rate ticked higher, while vacancies fell for a 36th straight period, down by 56,000 on the quarter to 727,000.
The ONS noted firms appear hesitant to recruit or replace departing staff, with vacancies down in most industries.
In equities, easyJet slumped over 7% despite stronger quarterly results, with investors concerned about fuel costs and air traffic control strikes in France. Pretax profit jumped 21% to £286 million, with revenue up 11%. The airline expects profit growth for the full year but flagged summer bookings and costs as key risks.
Diploma surged 8.4% after the technical products firm raised its annual organic growth forecast to 10% from 8%.
Ocado jumped 11%, topping the FTSE 250, after swinging to a pro-forma first-half pretax profit of £607 million. This reflected accounting changes around its retail joint venture with Marks & Spencer. However, from continuing operations, Ocado’s pretax loss widened to £173 million.
MyHealthChecked soared 33% following a supply agreement with Boots for self-test kits, including blood, DNA, and lateral flow tests, set to launch in August.
The pound was broadly flat after the data, as traders digested signs of a cooling but not collapsing labour market.