Rate Cut Unlikely After Employment Data

Tuesday, 21st January: The FTSE 100 dropped more than 1.0% at one point in the morning due to the concerns surrounding the deadly coronavirus in China which had a direct impact on the Asian markets as it was confirmed that it had already caused four deaths so far that people are aware of, and has infected more than 200 people in four countries.

One of the few gainers on the blue-chip index was EasyJet, up more than 4.0% in the morning following a Q1 trading update statement which revealed a 9.9% increase in revenue, 2.8% increase in passenger numbers, and 8.8% increase in revenue per seat, and they have already booked 75% of H1 seats so far. The group seem to have benefited from the collapse of rival Thomas Cook which occurred in September 2019, regardless of obstacles such as strikes in France which caused 871 flights to be cancelled between October and December.

EasyJet wasn’t the only one soaring on Tuesday, as fresh employment data in the UK came in higher than expected. In the three months to November, employment grew by 208,000, almost double the consensus figure of 110,000, and decreasing the likelihood of the Bank of England cutting rates next week, as it was also a new record high employment rate of 76.3%, up 0.5 percentage points compared to the previous quarter.

The positive jobs data also had a decent impact on sterling, which was up 0.31% towards the end of the day at $1.3044, and up 0.32% against the euro at €1.1756.

The FTSE 100 managed to reverse some of the damage from the morning as it closed 0.53% lower at 7610.7.

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