UK stock market rebounds after strong employment data | Market Screener

2021-12-14 14:33:57 By : Mr. Jianbin Ge

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* Rentokil Initial declines from historical highs

* BT Group fell due to Drahi's increased stake

* Miners and banks boost the FTSE 100 index

Reuters, December 14-The UK stock market rose on Tuesday after strong employment growth in November showed that the labor market had withstood the end of the UK vacation plan, while news of equity changes and mergers and acquisitions suppressed the telecommunications company BT Group and the pest control company Rentokil.

The blue-chip FTSE 100 index rose 0.5% and is expected to break the four-day decline. After concerns about new COVID-19 restrictions hit the two indexes on Monday, the domestic-focused FTSE 250 index rose 0.5%.

"The decline in the unemployment rate in the UK has undoubtedly boosted market sentiment, as investors have eliminated concerns related to the Omicron variant," said Kunal Sawhney, CEO of Kalkine Group.

Data released before the Bank of England’s monetary policy decision on Thursday showed that British employers increased a record number of employees in November.

Although positive, the data highlights the difficulties faced by the Bank of England after the rapidly spreading variant of the Omicron coronavirus and new restrictions have led investors to reduce their bets on interest rate hikes this week.

"As far as the Bank of England's 2021 policy meeting is concerned, the probability of raising interest rates is still very low," Sawhney said.

Mining stocks rose the most, up 1.3%, following the trend of rising aluminum prices due to tight supply and China's loosening of restrictions.

Among individual stocks, BT Group fell 5.8% after French-Israeli telecom entrepreneur Patrick Drahi increased his stake to 18%, which caused a defensive response from the British government, although he said he did not intend to initiate an acquisition.

The pest control company Rentokil Initial shares fell 4.9% and reversed after hitting a record high. Earlier, the company said it would acquire American peer Terminix Global in cash and stock.

The online supermarket group Ocado Group won a patent infringement lawsuit against the Norwegian robotics company AutoStore Holdings Ltd by the International Trade Commission, and its stock price rose 8.3%.

(Reporting by Bansari Mayur Kamdar in Bangalore; Editing by Subhranshu Sahu and Amy Caren Daniel)