LONDON's FTSE 100 finished yesterday in the green, as markets digested fresh figures on unemployment and wage growth, with another Bank rate hike now looking nailed on.

The capital's premier blue chip index went above 7,500 points on a busy morning as it rose by between 0.2 and 0.4 per cent just before 9am. It stayed between that and half a per cent, which it finished on by the close. London's FTSE 250 index, which is more closely aligned with the UK domestic market, was also up, ending Tuesday above 18,536, just under 0.1 per cent in the green.

Associated British Foods, which owns Primark, raised its outlook for the rest of the year, with the bottom line bolstered by new store rollouts and click and collect trials. Its shares were up by more than five per cent by the close.

The biggest faller on the FTSE 100 was Smurfitt Kappa, following it's megadeal with US rival Westrock. Investors didn't appear to be delighted with the major tie up, which makes the firm one of the biggest packaging companies in the world, as its shared plummeted by almost 10 per cent.

It came after fresh figures from the Office for National Statistics yesterday revealing record pay growth in July posed a new headache for the Bank of England when it meets later this month. The data showed annual pay growth excluding bonuses averaged 7.8 per cent between May and July, the same as the previous three month period and the joint highest rate of pay growth since records began in 2001. Including bonuses, earnings growth came in at 8.5 per cent. Markets will be taking note of the data, with another rate hike now even more likely.

(c) 2023 City A.M., source Newspaper