FTSE 100 rises on peak rate bets; Smurfit Kappa slumps on WestRock deal

UK's FTSE 100 index inched higher on Tuesday after labour data signalled that the Bank of England might be nearing the end of its interest rate hike cycle, although a slump in packaging producer Smurfit Kappa's shares capped gains. The exporter-heavy FTSE 100 index was up 0.1% in early trade, while the mid-cap FTSE 250 index was muted.

UK's FTSE 100 index inched higher on Tuesday after labour data signalled that the Bank of England might be nearing the end of its interest rate hike cycle, although a slump in packaging producer Smurfit Kappa's shares capped gains.

The exporter-heavy FTSE 100 index was up 0.1% in early trade, while the mid-cap FTSE 250 index was muted. Britain's unemployment rate rose to 4.3% in the three months to July from 4.2% a month earlier, while wages excluding bonuses were 7.8% higher than a year earlier and in line with economists' forecasts in a Reuters poll.

The sterling edged lower against the dollar after the unemployment data. Shares of Associated British Foods rose 0.9%, among the top gainers on the benchmark index, after the Primark owner raised its full-year profit outlook for the second time in four months.

London-listed shares of Smurfit Kappa slumped 11% after the company agreed to combine with WestRock, to create one of the world's largest paper and packaging producers worth nearly $20 billion.

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