UK equities opened marginally lower on Tuesday, while sterling remained firm against the US dollar, as investors digested fresh labour market data showing unemployment at its highest level since the pandemic. European markets also traded weaker in early dealings.
By 08:03 GMT, the FTSE 100 was down 0.05%, while the pound edged 0.09% higher against the dollar, trading above 1.33. On the continent, Germany’s DAX fell 0.6% and France’s CAC 40 slipped 0.2%, reflecting a broadly cautious tone across European markets.
UK economic update
Data from the Office for National Statistics showed that the UK unemployment rate rose to 5.1% in the three months to October, up from 5.0% previously and marking a post-pandemic high. Meanwhile, annual pay growth excluding bonuses eased to 4.6%, down from a revised 4.7% in the prior period. Together, the figures have strengthened expectations that the Bank of England could move towards an interest rate cut later this week.
Corporate highlights
Rolls-Royce Holdings PLC (LSE:RR.) announced plans to launch a £200 million interim share buyback programme from 2 January 2026. The move follows the completion of its £1 billion buyback in November 2025, with the new programme set to run until 24 February 2026, ahead of full-year results due on 26 February.
SThree Plc (LSE:STEM) said its FY25 performance is expected to be in line with previously issued profit before tax guidance of £25 million. Although group net fees declined 12% year on year, the company reported steady quarter-on-quarter improvement, with the US business returning to growth.
Goodwin PLC (LSE:GDWN) delivered a sharp increase in profitability for the six months to 31 October 2025. Trading profit rose to £37.2 million from £17.1 million a year earlier, while revenue climbed 27.4% to £135.6 million. Gross margins also strengthened significantly over the period.
AstraZeneca PLC (LSE:AZN) secured European Union approval for Saphnelo (anifrolumab) as a subcutaneous, self-administered treatment for adults with systemic lupus erythematosus. The decision follows positive Phase III TULIP-SC trial data and allows patients to use a pre-filled pen alongside standard therapy.
Serica Energy PLC (LSE:SQZ) agreed to acquire a portfolio of Southern North Sea assets from Spirit Energy Limited for £57 million, with completion expected in the second half of 2026.
IG Group Holdings PLC (LSE:IGG) reported a 29% increase in organic trading revenue for the quarter ended 30 November, supported by strong new customer growth. The group also extended its share buyback programme by £75 million to a total of £200 million, now expected to complete by the end of March 2026, and slightly upgraded its revenue growth outlook for calendar year 2026.
Elsewhere, water regulator Ofwat confirmed an £11 million enforcement package against Wessex Water over failures in operating and maintaining its wastewater network. In the energy sector, Shell PLC (LSE:SHEL) saw its head of mergers, Greg Gut, depart following the rejection of an internal proposal to acquire BP, according to reports.
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