The FTSE 100 and European stocks experienced gains on Thursday, despite the eurozone’s unemployment rate increasing from 6.2% in July to 6.3% in August.
According to Eurostat data, although the number of unemployed individuals was up by 11,000 compared to July, it was 15,000 lower than August of the previous year, and 136,000 lower than June.
In the UK, financial services showed signs of stabilization following a sharp decline. The latest CBI survey revealed business volumes decreased, with a weighted balance of -36%, down from -24% in June.
Despite a decline in activity, overall sentiment remained stable, increasing to +3 after dropping by 52% in the previous quarter. Firms anticipate better conditions in the next quarter, expecting a 37% growth in volumes.
Profitability fell at a slower rate in the third quarter, registering -13% compared to -24% in June, but is predicted to bounce back in Q4 (+26%). Staffing levels dropped by 24%, yet companies expect this decline to slow to -7%.
The survey also indicated that businesses intend to ramp up IT investments over the next year, with demand uncertainty being cited as the primary constraint, noted by 69% of firms, the highest rate since 2012.
London’s benchmark index remained around the flatline earlier in the afternoon. Germany’s DAX rose by 1.3%, and the CAC in Paris similarly increased by 1.3%. The pan-European STOXX 600 was up 0.8%, signaling a positive mood across the markets.
