FTSE 100 closes higher as earnings gather steam in Wall Street

·Finance Reporter, Yahoo Finance UK
·2-min read
FTSE 100 Photo by: NDZ/STAR MAX/IPx 2022 7/14/22 People walk past the New York Stock Exchange (NYSE) on Wall Street on July 14, 2022 in New York.
Both the FTSE 100 and Wall Street have bounced back. Photo: Getty

The FTSE 100 and European stock market have bounced back after early morning losses following the latest UK jobs data that showed wage growth is still lagging far behind inflation.

The FTSE 100 (^FTSE) closed higher, advancing 1% to 7,296 points, while the CAC (^FCHI) gained 1.7% in Paris. In Germany, the DAX (^GDAXI) gained 2.4% as trading ceased across Europe.

Across the pond, the Dow Jones (^DJI) rose 1.6% to 31,593 as trading in Wall Street continued. The S&P 500 (^GSPC) gained 1.9% to 3,905 and the tech-heavy Nasdaq (^IXIC) gained 2.1% to 11,606.

In London, the blue-chip index saw money transfer company Wise (WISE.L) jump 14.7% after providing its trading update.

Read more: Wise: City watchdog investigating fintech CEO after he ‘failed to pay taxes’

Cybersecurity firm Darktrace (DARK.L) added 4.1% after it raised its full-year profit margin forecast on the back of steady customer growth.

Made.com (MADE.L) slumped 45% after it slashed its sales and earnings guidance for 2022.

Shares in Hotel Chocolat (HOTC.L), the high-end chocolatier, crashed 44% after it warned on profits and scaled back its plans for global expansion.

The UK's unemployment rate held at 3.8% in the three months to May and the number of people in work rose by the most since the middle of 2021.

But the big concern is that the higher wages paid by the private sector will serve to entrench inflation, while the small pay rises witnessed in the public sector in the face of soaring prices will continue to stoke industrial tensions," Laith Khalaf, head of investment analysis, AJ Bell, said.

Meanwhile, oil prices appear to have stabilised, with Brent crude (BZ=F) hovering around $105 a barrel after Monday’s rally.

Read more: UK interest rates could hit 2% or even higher, warns Bank of England's Saunders

In Asia, Tokyo’s Nikkei 225 (^N225) advanced 0.68% to 26,969 while the Hang Seng in Hong Kong (^HSI) lost 0,91% to 20,656. The Shanghai Composite (000001.SS) dipped 0.3% to 3,266.

Watch: What is a recession and how do we spot one?

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