"Hopes for a Ukraine peace deal sent crude oil to a seven-month low and weighed on European defence names on Tuesday morning, after European leaders said they were ready to lead a multinational force to secure a peace deal and the US pledged to support Nato-style security guarantees for Kyiv. Whilst being seen by the markets as a positive, it leaves tricky issues unresolved, like Kyiv giving up land to Russia in return for an end to the war."
"The UK jobs market continues to look less sure-footed by the month. Today's data showed further weakness as unemployment neared a five-year high at 5.1%, while the number of payrolled employees fell 0.1%. Cooler wage growth meanwhile makes the case for a swift response from the Bank of England stronger. A rate cut is assured this week but persistently weak labour market data like we are seeing should portend further cuts next year."
Hopes of a Ukraine peace deal drove Brent crude below $60 to a seven-month low and put pressure on European defence stocks including BAE Systems, Babcock, Rolls-Royce, Rheinmetall, Saab and others. European leaders signalled readiness to lead a multinational force and the US offered Nato-style security guarantees for Kyiv, leaving unresolved territorial concessions. UK labour data weakened as unemployment neared 5.1% and payrolled employees fell 0.1%, with cooler wage growth reinforcing the case for Bank of England rate cuts now and potentially next year. Markets saw rotation into consumer discretionary while AI and tech names continued to sell off.
Read at London Business News | Londonlovesbusiness.com
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