Stocks climb as UK jobs market cools, Diploma and | Money News

• FTSE 100 up 65 factors to 10,389
• UK jobs information weakens, unemployment back to five%
• IG Group, Diploma, Currys, Dr Martens, SSP, Cranswick amongst reporters  

1.32pm: Buy bonds, says UBS

Some notable notes from right now’s City offering.  

UBS has instructed buyers buy each authorities bonds and equities regardless of a sharp world sell-off in authorities debt triggered by inflation fears stemming from the warfare within the Middle East.

Recent rises in bond yields have created an “appealing risk-return profile”, UBS chief investment officer Mark Haefele says, with the bank additionally sustaining a constructive outlook for world stock markets.

“Yield volatility is likely to pick up further the longer the Strait of Hormuz remains closed, with markets pricing the upside risks to inflation and tighter monetary policies across the world,” Haefele provides.

“But we maintain the view that quality bonds offer an appealing risk-return profile given the two-sided risks on inflation and growth. We also do not expect higher yields to derail the current equity rally.”

As for some bond-like shares, ie utilities, his UBS colleagues say UK utility shares face a probably prolonged period of political strain after struggling their fourth-largest single-day decline since privatisation.

The Swiss bank warns that the final two comparable episodes the place buyers frightened about authorities intervention risk took round two years to clear.

The sector fell 7.5% on 15 May, almost thrice the two.8% decline throughout continental European utilities, in a transfer UBS attributed to a sharp rise in gilt yields and growing considerations in regards to the future possession construction of the industry.

Elsewhere, proposals to cap the price of staple meals in Scotland have been branded “hare-brained” by Shore Cap’s Clive Black, who received into his food puns by warning the SNP coverage may scale back investment, restrict client selection and create “administrative spaghetti”.

In a pretty blistering be aware, the analyst in contrast the proposed “Fair Price Plan” to insurance policies more generally seen in “a severely struggling less developed nation”, as the SNP proposed laws subsequent yr that will set most costs on up to 50 food staples, together with merchandise such as bread and milk, as half of its 2026 election manifesto.

Black argued the coverage misunderstood the causes of food inflation, which he mentioned stemmed largely from larger power costs, labour prices, regulation and commodity shocks following Russia’s invasion of Ukraine.

12.35pm: FTSE firmly in inexperienced, whereas Wall Street alerts crimson

The FTSE 100 and different European stock markets stay firmly in constructive territory as the US begins to wake up.

London’s blue-chips are up 0.6%, in comparison with 1.2% in Frankfurt, 0.7% in Paris and 0.7% for the pan-European Stoxx 600. 

IG Group leads the Euro Stoxx risers, up over 10%, adopted by German software program company Nemetschek and Swedish playing technology group Evolution Gaming.

Defence shares remained in demand, with Hensoldt up almost 8% as buyers continued to back the sector on expectations of larger European navy spending, (with the Footsie’s BAE up 2.25% and Babcock down 0.2%).

Cranswick gained more than 6% after the chicken and pig producer grew gross sales 9.5% and earnings 14.5%.

Wall Street futures are within the crimson, although, with the Nasdaq seen falling 0.6%, the S&P 500 0.4% and the Dow Jones 0.2%. 

The US greenback stays stronger throughout the board as we ticked into the afternoon.

“It was fortunate to be in demand on the back of rising US Treasury yields,” says market analyst David Morrison at Trade Nation.

“The oil price remains elevated, and this is feeding through into inflation numbers around the globe. But the dollar remains top dog as traders price in an increased possibility that the Federal Reserve may keep interest rates unchanged this year or even nudge them higher.”

He says US shares are down as a consequence of the current sharp rise in US Treasury yields, as oil costs have “shown little sign of retreating”.

Front-month WTI stays above $108 per barrel, which is feeding by means of into inflation, with final week seeing each the CPI and PPI are available hotter-than-expected.

Yields on the 10-year Treasury hitting their highest stage since February 2025, up from under 4.0% in February this yr, has specifically led to the tech sector, and semiconductors specifically, being hit, says Morrison.

11.57am: Activist push at Porvair

Shares in Porvair, a filtration merchandise group, are up virtually 4% after Sky News says an activist is pushing for change.

Activist investor Richard Bernstein, who has a small personal stake, is urging the board to have a look at placing the company up for sale.

This follows a current ‘bloody nostril’ on the AGM, the place 24% voted in opposition to chairman John Nicholas’s re-election.

Sky says Bernstein, founder and former investment supervisor of Crystal Amber, has written to Nicholas to induce him to discover strategic alternate options for the company.

Bernstein argues Porvair is “an attractive business currently valued by the stock market at substantially below its strategic value” and the board ought to goal to “release value by actively engaging in strategic alternatives”. 

11.19am: Road to Wall Street clear for Altman and Musk after courtroom verdict

A pleasant replace on the upcoming IPOs of OpenAI and SpaceX, after Elon Musk’s case in opposition to the company he co-founded was dismissed final night time. 

This eliminated the final vital impediment between Sam Altman and what is anticipated to be a $1 trillion initial public offering later this yr.

The verdict got here at a crucial time for each Musk and Altman, as every pushes a flagship company towards the public markets in what are anticipated to be record-breaking listings.

But Bloomberg, in a remark piece, says there may be an “ever-darkening cloud” over Altman’s suitability.   

“.. If there’s one thing of any value to take from the trial, it’s the ever-darkening cloud over Altman’s suitability .. “.. Especially telling was .. just how many of Altman’s earliest allies now seem to want little to do with him.” @bloomberg.com www.bloomberg.com/opinion/arti…

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— Carl Quintanilla (@carlquintanilla.bsky.social) May 19, 2026 at 10:51 AM

10.49am: Chris Hohn, DB and LSEG

Some readers would possibly keep in mind Sir Chris Hohn and his The Children’s Investment fund, which have been seen as instrumental in stopping the London Stock Exchange’s merger with Deutsche Börse in 2004-2005.

Management tried to revive the deal in 2016/17, however a merger was rejected by competitors regulators.

TCI judged the unique 2004 mixture as value-destructive, with the activist fund’s push resulting in the departure of DB’s CEO and chairman, as properly as a capital return.

TCI is now back on the German borse’s register with a disclosed 5.15% stake.

In a be aware, Jefferies analyst Tom Mills says “history rhymes” as DB1 is endeavor a “nominally larger but non-transformative acquisition of Allfunds”.

“TCI’s agenda, if it has one, hasn’t been made public so far, but we suspect it isn’t merely a passenger.”

Bloomberg experiences a source close to TCI saying that it’s not planning any activism, regardless of the timing raising eyebrows as Deutsche Börse pursues its largest-ever deal, whereas activist Elliott Management builds a place in LSEG.

9.54am: Stan Chart says it’s changing ‘low worth’ human staff with AI

Standard Chartered has overtly tied large-scale job cuts to the rise of AI, with chief government Bill Winters saying automation would substitute “lower-value human capital” throughout the business.

Shares within the Asia-focused lender are down 0.5%, which is uncommon, as markets usually love to listen to about job cuts.

The FTSE 100-listed lender mentioned it plans to cut more than 15% of roles in company features by 2030 as it pushes forward with AI adoption and wider automation efforts. Based on present staffing ranges, that equates to more than 7,000 jobs.

It is an element of a broader strategy overhaul, with Stan Chart aiming to elevate return on tangible equity (ROTE) to about 18% by 2030, up from 12% in 2025, whereas reducing its cost-to-income ratio to about 57%.

Winters informed reporters the modifications have been “not cost-cutting” however half of a shift in direction of investing in technology and productiveness.

“It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in,” he mentioned.

Of course the entire recreation is about changing labour with capital nevertheless it’s nonetheless startling when a CEO is so specific about it. www.reuters.com/business/wor…

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— Peter Thal Larsen (@petertl.bsky.social) May 19, 2026 at 9:13 AM

9.19am: European shares gain, however temper is ‘confused’

The FTSE 100 has continued to gain ground this morning. 

Results from the likes of IG and Diploma helps, but in addition the easing BoE price expectations too.  

Miners are a weight across the index, with Rio Tinto, Glencore and Antofagasta the main fallers, down 1.8-1.7%, and Anglo American nearer 1% in arrears and valuable metals producers Fresnillo and Endeavour down round 0.8%. 

Housebuilders are down, regardless of the speed chat.

“It’s a rather strange, rather mixed and confused picture with various conflicting signals from the Middle East making it a tough read for traders,” says Neil Wilson, market analyst at Saxo.

“Friday’s bond selloff has eased a bit, but it’s clear bond markets remain highly sensitive to inflation and fiscal risks.”

“Offer and counteroffer, hearsay upon report… it’s been all the US-Iran milieu in microcosm the final 24 hours.

“With the trading week initially kicking off with yields up and equities down, European stock markets turned course and rallied while bond yields drifted down on reports of a possible de-escalation of the US-Iran situation, which had started to show signs of heating up over the weekend.”

Brent crude oil futures are back over $110 a barrel.

Kathleen Brooks at XTB says “risk sentiment is mixed”, as “investors weigh up the costs of the war in the Middle East”.

She says Trump’s feedback that the US wouldn’t strike Iran and break the ceasefire right now haven’t had a lot of an influence on oil costs.

“There is a sense of frustration that there has been no break in the impasse between the US and Iran and no clear path to a deal to end the war.”

The FTSE’s features, plus a 1.25% bounce for Germany’s DAX and 0.9% for France’s CAC, persevering with the rally from the beginning of the week.

Europe’s lesser tech publicity is “providing some resilience to the tech-led sell off in US stocks”, says Brooks. “However, sentiment is expected to remain fragile, as bond yields are rising moderately this morning at the open.”

8.54am: Diploma enjoys ‘sturdy momentum’

Shares in Diploma rose 5.3% after the maker of specialised technical merchandise delivered interim outcomes that beat expectations and, with seven acquisitions made because the Q1 replace, has additionally triggered its second steerage improve in three months.

The group reported 15% natural income growth within the six months to 31 March, an working margin of 24.5%, earnings growth of 36%, and returns on capital of 22.7%.

Analyst Sam Dindol at Stifel says, by sector, Controls is “the standout”, with 26% natural growth and working margins up 430 foundation factors, whereas Seals natural growth was 2% and Life Sciences 4%.

“This is another strong update from Diploma, highlighting the strong momentum in the business. The shares are trading on a one-year forward P/E of circa 29.3x, slightly above the five-year average and within the range of quality compounding peers.”

8.33am: The Bank of England could not need to hike 

More economists are popping out in settlement that the jobs information casts vital doubt on whether or not the Bank of England will need to hike rates of interest in June or July to counter inflationary pressures from the Iran warfare. 

ING economist James Smith says the “dreadfrul” jobs report “questions the need for Bank of England price hikes”.

He says the rising unemployment, sharply decrease payrolls and tumbling wage growth “is a reminder that the economy is much less susceptible to ‘second round’ effects from the incoming energy shock” in comparison with the price spirals seen during the 2022 power disaster.

Rob Wood at Pantheon Macroeconomics says the info provides the Bank’s financial coverage committee some dovish avidence and “wipes out the lingering chance of a hike at the June policy meeting”, as the earlier indications that the labour market could possibly be holding up properly within the first couple of months after the Iran warfare have been challenged.

“Pay growth now provides key dovish evidence for the MPC, and puts in doubt a July rate hike too,” he provides. 

Thomas Pugh, economist at RSM UK, mentioned weaker employment and slowing pay growth would “temper the need for aggressive rate hikes” as staff have been now in a weaker place to demand larger wages to offset rising power payments.

ING’s Smith says his staff has been “tentatively” forecasting a one-and-done price hike in June and whereas that is still the bottom case, (“mainly because our house view on energy prices, particularly for natural gas, and given that the Strait of Hormuz is showing little sign of reopening”) that is “a close call” and “a lot will also depend on tomorrow’s inflation data”.  

8.15am: FTSE 100 opens larger

The FTSE 100 has climbed 51 factors in initial trading to 10,375. 

Top of the early leaderboard is online broker IG Group, up 7% after reporting a sturdy first quarter.

Diploma is subsequent, up 6.2% as the engineer reported half-year outcomes. 

On the FTSE 250, Currys and Dr Martens are each up over 6% too.  

8am: Jobs information to keep BoE handbrake on 

Today’s jobs market information will keep the Bank of England from raising charges, says Sanjay Raja, chief UK economist at Deutsche Bank.

There have been three large surprises in right now’s quantity, he says, with the unemployment price ticking back up to five%, a “mammoth” fall of 100k payrolled workers within the flash HMRC estimate, although Raja says this payrolled information tends to be revised considerably.

“But the sheer fall in payrolled employees will stop any MPC member thinking about tightening monetary policy (at least for now).”

“Third, in even better news for the Bank of England, wage growth continues to recede – and recede faster than it anticipated.”

Average weekly non-public sector earnings slowed to three%, a tenth decrease than the BoE anticipated, which “will drag on domestic inflation, meaning that the MPC could be tempted to look past the unfolding energy shock”.

Raja says the labour market “won’t get any better over the coming months”, as geopolitical uncertainty will likely be amplified by home political uncertainty, with corporations anticipated to restrict hiring over the approaching months as price pressures mount. 

7.54am: Dr Martens and Currys

A pair of company tales from totally different corners of the FTSE 250 retail scene. 

Dr Martens returned to revenue growth final yr as the bootmaker tightened discounting, improved margins and pushed forward with a turnaround centred on higher-quality gross sales.

The boots, footwear and purses group reported an adjusted pre-tax revenue of £55 million within the yr to 29 March, up 61% on the yr earlier than, whereas income fell 2.9% to £764.9 million.

Elsewhere, in a year-end trading replace, Currys mentioned it expects earnings to beat steerage after sturdy trading in each the UK and Nordic markets helped it gain market share.

The electricals retailer mentioned adjusted pre-tax revenue for the yr to 2 May is anticipated to be about £191 million, up 18% on the earlier yr and forward of just lately indicated steerage of £180-190 million.

7.25am: Oil costs unstable over US-Iran experiences 

Oil costs are down this morning, with Brent crude off 2% at just under $110 a barrel, having spent a unstable day yesterday leaping between two-week highs above $112 and under $108 as varied experiences filtered by means of from the US and Iran. 

It led to a blended 24 hours, says Deutsche Bank’s Jim Reid, with 10yr Treasury yields stabilising after touching their highest stage in over a yr at 4.63%.

“The broader market mood is on the cautious side this morning,” says Reid, precisely six weeks into the ceasefire, following 5 and a half weeks of strikes.

“While my base case is that the absence of kinetic activity would not have persisted this long without US intent to secure a deal, the lack of an agreement, despite several false dawns, remains a source of nervousness.”

Trump claimed final night time that he had known as off an assault in opposition to Iran that had been scheduled for right now after an appeal by leaders of Qatar, Saudi Arabia, and UAE.

In the identical post, Trump additionally mentioned that he ordered the US navy to be prepared for ‘a full, giant scale assault of Iran, on a second’s discover, within the occasion that an acceptable deal shouldn’t be reached’.

Trump later mentioned that he was requested to put off new strikes “for two or three days” as allies thought “they are getting very close to making a deal”, whereas persevering with to emphasize the US goal that Iran can not have nuclear weapons.

Iran’s Tasnim company reported that Tehran felt the US had “excessive demands and unrealistic positions”, whereas Axios cited a senior US official who mentioned the White House thought Iran’s newest proposal was not enough for a deal.

7.17am: FTSE 100 known as larger

The FTSE 100 was known as larger on Tuesday as UK jobs information was printed and US President Donald Trump mentioned he had known as off deliberate new strikes in opposition to Iran as intermediated negotiaions progressed.

A gain of round 35 factors was indicated on the futures market for the London blue-chip index, which yesterday turned an early 37-point deficit into a gain of 128 factors by the close at 10,323.75. 

US shares have been blended in a single day, with the tech-heavy Nasdaq dropping 0.5%, the S&P 500 just under flat and the blue-chip Dow Jones rising 0.3%. 

Asian markets are additionally blended this morning, with Hong Kong’s Hang Seng and the Shanghai Composite each up round 0.4-0.5%, whereas Japan’s Nikkei is down 0.7%.  

UK wage growth remained sticky in March, information from the Office for National Statistics confirmed, however the labour market confirmed additional indicators of cooling, holding buyers not sure about what the Bank of England will do with rates of interest this summer season.

The unemployment price rose to five.0% from 4.9% for March, whereas average wages excluding bonuses rose 3.4% within the three months to March, in step with forecasts.

Claimant depend numbers elevated by 26,500 in April and payrolled employment fell by 100,000, far worse than the ten,000 decline anticipated by economists.