Sterling fell this morning and British bond yields fell after data showed the UK’s unemployment rate had risen to a five-year high and wage growth was slowing.
The European Stoxx600 index remained stable above the break-even point, with Italy’s FTSE MIB rising about 0.4%, France’s CAC40 rising about 0.2%, and Germany’s DAX rising 0.1%.
jobs and wages
On the London Stock Exchange, the FTSE 100 index rose about 0.5% immediately after the market opened. The pound sterling fell 0.2% against the dollar, reaching $1,359, but the UK’s employment and wage statistics showed that the number of salaried workers will decline by 0.4% annually, reaching 30.3 million by January 2026. This is equivalent to a decrease of 134,000 people compared to January 2025 and a decrease of 11,000 people compared to the previous month. American network CNBC reviewed it. “Arabic Business”.
highest level
The unemployment rate rose from 5.1% in November last year to 5.2% in December 2025, the highest level since January 2021.
British bond yields (British bonds) fell following the release of the employment data, with the 10-year bond yield dropping 3 basis points to 4.368% and the 2-year bond yield dropping 2 basis points to 3.563%.
The market sees the Bank of England continuing to cut interest rates this year, with a 75% chance of another rate cut next month after the unemployment rate is announced.
Sterling fell this morning and British bond yields also fell after data showed Britain’s unemployment rate had risen to a five-year high as wage growth slowed.
The European Stoxx600 index remained stable above the break-even point, with Italy’s FTSE MIB rising about 0.4%, France’s CAC40 rising about 0.2%, and Germany’s DAX rising 0.1%.
jobs and wages
On the London Stock Exchange, the FTSE 100 index rose about 0.5% immediately after the market opened. Meanwhile, according to a report published by American Network, UK employment and wage data shows that the number of registered employees has fallen by 0.4% year-on-year, with a total of 30.3 million registered employees in January 2026. The British pound fell 0.2% against the dollar to $1.359 after the UK economy showed 134,000 fewer people than in January 2025 and 11,000 fewer people than the previous month. Reviewed by “CNBC” and “Al Arabiya Business”.
highest level
The unemployment rate rose from 5.1% in November 2025 to 5.2% in December 2025, the highest level since January 2021.
British bond (gilt) yields fell following the release of the employment data, with the 10-year bond yield dropping 3 basis points to 4.368% and the 2-year bond yield dropping 2 basis points to 3.563%.
Markets believe the Bank of England may continue to cut interest rates this year, with a 75% chance of another cut next month following the unemployment data.
