Yahoo Finance FTSE closes higher, US stocks dip ahead of Apple event
A look at how the major markets are performing on Tuesday
The FTSE 100 (^FTSE) closed higher on Tuesday afternoon ahead of Apple's (AAPL) latest product launch with the company expected to reveal its new iPhone 15 models and Apple Watch products.
The new smartphones are likely to have slight improvements in terms of their chip and camera functionalities — and a new USB-C charging port is also expected to be part of its fresh line up in order to comply with European regulations.
Across the pond, the S&P 500 (^GSPC) slipped 0.4% and the tech-heavy Nasdaq (^IXIC) was 0.6% lower. The Dow Jones (^DJI) was 0.2% down in New York as investors await US inflation readings later this week.
Meanwhile, UK wage growth surged at a record pace, keeping up with inflation for the first time in nearly two years.
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According to the Office for National Statistics (ONS), average regular weekly earnings growth remained at a record high of 7.8% in the three months to July, matching Consumer Price Index (CPI) inflation for the first time since October 2021.
Total pay including bonuses rose by 8.5% during the period. This meant that it exceeded inflation for the first time since March 2022, up 0.6% with CPI taken into account.
Meanwhile, the unemployment rate increased to its highest level for nearly two years at 4.3% in the quarter to the end of July, up from 4.2% the previous three months.
Darren Morgan, ONS director of economic statistics, said: “Earnings in cash terms continue to increase at a record rate outside the pandemic-affected period. Coupled with lower inflation, this means people’s real pay is no longer falling.
Read more: UK pay rises at record rate stoking fears of another interest rate rise
“Unemployment continues to increase in the latest three months. Correspondingly, employment is down, driven by falls among men and the self-employed.
“The proportion of people neither working nor looking for a job is slightly up, with more students, as well as the long-term sick reaching yet another record.”
London's benchmark index held gains north of 7,500 after making steady progress yesterday off the back of mining stocks. In Europe, the CAC (^FCHI) was 0.1% down in Paris, and the Frankfurt DAX (^GDAXI) was 0.3% lower.
Neil Wilson of Markets.com said: "Some rotation taking place with basic resources and energy giving back a bit today, whilst defensives like healthcare and telecoms are picking up some bid having slipped yesterday on a more risk-on trade."
Watch: How does inflation affect interest rates?
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