British equities opened modestly lower on Tuesday, while the pound remained steady against the U.S. dollar after fresh data showed UK unemployment rising to a post-pandemic high in October. Broader European stock markets also traded lower, adding to the cautious tone.
By 08:03 GMT, the FTSE 100 slipped 0.05%, while sterling gained 0.09% against the dollar, trading above the 1.33 level. Across Europe, Germany’s DAX fell 0.6% and France’s CAC 40 declined 0.2%.
UK labour market update
New figures from the Office for National Statistics revealed that the UK unemployment rate climbed to 5.1% in the three months to October, up from 5.0% previously. The reading marks the highest level since the pandemic.
Wage growth also eased during the period. Average earnings excluding bonuses rose at an annual rate of 4.6%, slightly below the revised 4.7% recorded a month earlier. Together, the data reinforces expectations that the Bank of England could cut interest rates at its policy meeting later this week.
Corporate news highlights
Rolls-Royce Holdings announced plans to launch a £200 million interim share buyback starting on January 2, 2026, following the completion of its £1 billion buyback program in November 2025. The new buyback will run until February 24, 2026, ahead of the company’s full-year results due later that month.
SThree, the global STEM recruitment specialist, said its full-year 2025 performance is expected to meet prior profit guidance of £25 million. Although group net fees fell 12% year-on-year, the company reported steady quarterly improvement, with the U.S. business returning to growth.
Engineering firm Goodwin reported a sharp rise in profits for the six months to October 31, with trading profit climbing to £37.2 million from £17.1 million a year earlier. Revenue rose more than 27% to £135.6 million, while margins improved significantly.
AstraZeneca secured European Union approval for a self-administered version of its lupus treatment Saphnelo. The decision allows adult patients with systemic lupus erythematosus to use a pre-filled injection pen alongside standard therapy.
Serica Energy agreed to acquire a portfolio of Southern North Sea assets from Spirit Energy for £57 million, with the transaction expected to complete in the second half of 2026.
IG Group reported a 29% increase in organic trading revenue for the quarter ended November 30, supported by strong new customer growth. The company also extended its share buyback program to £200 million and lifted its revenue growth outlook for 2026.
Regulatory and sector developments
Water regulator Ofwat confirmed an £11 million enforcement action against Wessex Water over failures in the operation and maintenance of its wastewater network.
Separately, Shell’s head of mergers and acquisitions, Greg Gut, has departed the company following the rejection of a proposed takeover of BP. The plan was blocked earlier this year by Shell’s senior management, according to reports.
