FTSE 100 watch: Footsie slides after UK jobs data

The UK benchmark index has fallen into the red in today’s session, with investors digesting the latest employment data out of the UK, as well as a string of corporate news. Severn Trent (LON:SVT) meanwhile has gained ground, after unveiling that it had inked a deal to buy Dee Valley Group.

As of 12:19 GMT, the FTSE 100 had shed 41.98 points to stand 0.62 percent lower at 6,750.76, having traded little changed earlier in the session. The index has been subdued following the release of the latest labour figures for the UK, which pointed to a rise in the claimant count, despite a drop in the unemployment rate.

“The reading is the most up to date of the three key jobs metrics, covering October instead of July to September, suggesting that unemployment may be beginning to rise from its current lows,”

Connor Campbell at Spreadex explained in a note.

“It was the prospect of this which seemed to be the main market-takeaway from this morning’s figures.”

A hefty drop in Rolls-Royce Holdings (LON:RR) is also weighing on the blue-chip index, with the group’s shares trading 2.98 percent in the red at 732.00p, following the engine maker’s trading update this morning.

“Operationally, the group is undergoing some major restructures. Investors will hope that it emerges as a leaner and more transparent company. However, the road ahead could be a long one,” George Salmon, an equity analyst at Hargreaves Lansdown told Reuters.

Severn Trent’s share price meanwhile has jumped 1.17 percent to 2,164.00p after the water utility said that it had agreed a deal to acquire Dee Valley for about £78.5 million.