FX.co ★ FTSE 100 Rises 1% to New Record after Jobs Data

The FTSE 100 surged over 1% to reach new heights close to 9,900 on Tuesday, following an increase in UK unemployment to 5%, the highest level since 2021. This development has heightened expectations for a potential interest rate cut by the Bank of England next month, with markets currently reflecting an 80% probability of such a move in December. The rally was primarily driven by blue-chip companies: AstraZeneca and British American Tobacco rose over 2%, while Shell experienced a 1.5% increase, and BP and HSBC saw gains exceeding 1%. Vodafone also climbed approximately 5% after announcing a return to profitability in Germany and projecting earnings at the upper end of its forecasted range. Citi described Vodafone's performance as "robust", highlighting that its policy to raise dividends by 2.5% annually is likely to be well-received by investors, thereby providing additional impetus to the broader index.