UK markets steady as pound surges on jobs data while Wall Street hits fresh records

​​​FTSE 100 remains flat as pound strength takes centre stage

​The FTSE 100 opened relatively unchanged this morning, tracking sideways movement across European indices. Despite the muted performance, underlying strength emerged from mid-cap stocks, with the FTSE 250 gaining 0.2% in early trading.

​Market participants appeared focused on currency movements rather than on the FTSE. The pound's surge overshadowed modest stock market movements, suggesting traders were digesting the implications of UK employment data.

Gold miners provided a notable bright spot, rallying strongly as the precious metal hit fresh record highs. Fresnillo and Hochschild emerged among the day's top performers, benefiting from expectations of US monetary easing. Fresnillo's remarkable 277% gain this year highlights the sector's exceptional performance.

​Sterling hits two-month peak following mixed UK employment figures

​The British pound surged to a two-month high above $1.36 after UK employment data showed wage growth continuing to moderate. Annual earnings growth excluding bonuses slowed to 4.8% in the three months to July, down from the previous 5% reading. This deceleration suggests inflationary pressures from wages may be easing gradually.

​However, unemployment remained steady at 4.7%, maintaining levels not seen since 2021. Payrolled employees declined for the seventh consecutive month, dropping by 8,000 in August. This persistent weakness in employment numbers reflects the ongoing cooling in the UK labour market.

​Job vacancies continued their dramatic decline, falling for the 38th consecutive quarter. Construction, manufacturing, and hospitality sectors led the downturn. This persistent weakness reflects businesses' cautious approach to hiring amid economic uncertainty and increased employment costs from recent tax changes.

​Wall Street extends record run ahead of Federal Reserve decision

​US markets delivered another strong session, with the S&P 500 gaining 0.47% and the Nasdaq 100 advancing 0.94%. Both indices reached fresh intraday highs as investors positioned ahead of Wednesday's Federal Reserve (Fed) meeting. The Dow Jones added a modest 0.11%, lagging its growth-focused counterparts.

​Options markets indicate high probability of a 25 basis point rate cut at this week's meeting. Traders appear increasingly confident that the Fed will begin its easing cycle, supporting risk assets. This expectation has driven much of the recent rally in US equities.

​The VIX volatility index remained subdued around summer lows, suggesting complacency among investors. This calm environment often precedes significant market moves, particularly around major policy announcements. Traders should monitor volatility closely as the Fed decision approaches.

​Tesla surges while tech giants face mixed fortunes

​Tesla shares climbed 3.6% after regulatory filings revealed CEO Elon Musk purchased nearly $1 billion worth of additional stock. This significant insider buying provided confidence to investors, lifting the broader consumer discretionary sector to nine-month highs. Such large-scale insider purchases often signal management confidence in future prospects.

​Alphabet achieved a historic milestone, surpassing $3 trillion in market capitalisation for the first time. The Google parent company's achievement reflects the market's confidence in its artificial intelligence (AI) capabilities and dominant market positions. This milestone positions Alphabet alongside Apple and Microsoft in the exclusive $3 trillion club.

​However, not all technology stocks enjoyed positive momentum. Nvidia faced pressure despite its dominant position in AI hardware. Chinese regulators announced they found the company violated anti-monopoly laws and would continue their investigation. Such regulatory scrutiny poses ongoing risks for the chip giant.

Individual UK stocks show dramatic moves on earnings updates

​Trustpilot delivered standout performance, surging 11% after upgrading profit guidance and announcing a new share buyback programme. The consumer reviews platform reported strong revenue growth and record enterprise customer wins. Such dramatic moves demonstrate how earnings surprises can drive significant price action.

​Construction firm Kier rallied nearly 9% on better-than-expected trading updates. The company indicated current financial year performance slightly ahead of expectations, providing relief to shareholders. Construction stocks often serve as economic bellwethers, making positive updates particularly significant.

​Conversely, recruitment specialist SThree plummeted 28% after warning of continued profit pressure. The company cited persistent labour market weakness extending into 2026, reflecting broader employment challenges. This dramatic decline illustrates how negative guidance can severely impact share prices.

​Healthcare consumer goods company Haleon fell approximately 2% following a Barclays downgrade. Analysts expressed concerns about the US business outlook, highlighting sector-specific challenges.