European markets are higher this Wednesday as the UK unemployment rate hits lowest since 1975 but real wages keep on falling. The UK’s jobless rate has fallen to a 42 year low – down to 4.5% - falling by 64,000 to 1.49 million in the three months to May according the office for National Statistics.
But wages are falling behind inflation. Inflation hit an almost four-year high of 2.9% in May and wages have only risen by 2.0% year-on-year. This means the Bank of England is less likely to move rates anytime soon. Sterling regained some strength on the news after falling against the euro to its lowest in eight months following warnings over the post-Brexit economy by Bank of England deputy governor Ben Broadbent.
Here in Europe we are awaiting news from across the pond as US Federal Reserve Chair Janet Yellow gets set to present her latest Monetary Policy Report. And the Bank of Canada will decide whether or not to raise its interest rates.
In corporate news pub chain Wetherspoon reported a 5.3 percent increase in like-for-like sales in the second quarter of this year. {ANI} Fashion retailer Burberry also reported a 4% increase for the same period – helped by sales in China from the ‘mid teens’. {ANI} And Housebuilder Barratt developments was also got a boost after completing the most amount of homes in nine years.
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--- Written by Katie Pilbeam, DailyFX
