FTSE 100 stalled by Vodafone's outlook cut, weak employment data
Vodafone tumbled 4.8% after the mobile phone operator cut its full-year free cash flow forecast, reflecting a worsening global macroeconomic climate and higher energy costs. Data earlier showed Britain's unemployment rate unexpectedly rose and vacancies fell for the fifth report in a row as employers worried about the outlook for the economy ahead of a tough government budget plan later this week.
- Country:
- United Kingdom
The FTSE 100 slipped from two-month peaks, as Vodafone's disappointing outlook on Tuesday added to the gloom of weaker-than-expected employment data.
The blue-chip index was down 0.1% by 0823 GMT after hitting a two-month peak last week. Vodafone tumbled 4.8% after the mobile phone operator cut its full-year free cash flow forecast, reflecting a worsening global macroeconomic climate and higher energy costs.
Data earlier showed Britain's unemployment rate unexpectedly rose and vacancies fell for the fifth report in a row as employers worried about the outlook for the economy ahead of a tough government budget plan later this week. However, the pound rallied against a weakening dollar amid growing expectations that the U.S. Federal Reserve will slow its pace of interest rate hikes.
The domestically focused FTSE 250 midcap index also slipped 0.1%, with Ninety One dropping 5.9% after the investment manager said its half-year assets under management fell by 8%. BAE Systems jumped 2.9% after Prime Minister Rishi Sunak awarded a 4.2 billion pound ($4.94 billion) contract to build five ships for the Royal Navy.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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- U.S. Federal Reserve
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