Rate worries cap gains in FTSE 100, Vodafone up on earnings beat

Vodafone jumped 3.9% to the top of the index after raising its forecast for this year's free cash flow and reporting a 6.5% growth in adjusted core earnings in the first half. Data showed British employers added 160,000 workers to their payrolls in October, the first month after the end of the UK's furlough scheme, and the unemployment rate fell more than expected in the third quarter, cementing expectations of a rate hike in December.


Reuters | London | Updated: 16-11-2021 14:11 IST | Created: 16-11-2021 14:04 IST
Rate worries cap gains in FTSE 100, Vodafone up on earnings beat
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London's FTSE 100 inched up on Tuesday, as strong results from telecoms company Vodafone and spirits maker Diageo outweighed worries about interest rate hikes after strong jobs data. The blue-chip FTSE 100 index was up 0.1%. Vodafone jumped 3.9% to the top of the index after raising its forecast for this year's free cash flow and reporting a 6.5% growth in adjusted core earnings in the first half.

Data showed British employers added 160,000 workers to their payrolls in October, the first month after the end of the UK's furlough scheme, and the unemployment rate fell more than expected in the third quarter, cementing expectations of a rate hike in December. Bank of England Governor Andrew Bailey said on Monday he was very uneasy about the inflation outlook.

Sterling gained strength, weighing on dollar earners such as British American Tobacco, Reckitt Benckiser and Unilever. Johnnie Walker whisky maker Diageo added 2.2% after setting higher medium-term growth targets, offsetting losses of other export-oriented stocks.

The domestically focussed mid-cap index was flat. UK's largest commercial property firm Land Securities Group added 1.4% after reporting a swing to a half-year profit, as it recovers from the pandemic which battered its key Central London-focused office portfolio.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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