This post was originally published on this site
Reuters The More London business district in the U.K. capital
The British pound advanced on Tuesday as employment data slowed the momentum toward a rate cut at the end of the month.
Sterling GBPUSD, +0.4689% rose to $1.3059 versus Monday’s close of $1.3009. Short-sterling futures L00, +0.03%, which move in the opposite direction to implied interest-rate expectations, fell two basis points.
U.K. employment grew by 208,000 in the three months to November as the unemployment rate stayed at 3.8%, the Office for National Statistics reported on Tuesday
Average weekly earnings growth stayed at 3.2%.
“The figures were respectable so it adds weight to the argument the Bank of England shouldn’t cut rates later this month,” said David Madden, analyst at CMC Markets U.K. The Bank of England meets on Jan. 30 to determine whether to cut interest rates.
The FTSE 100 UKX, -0.91% meanwhile dropped 0.79% to 7591.25.
Nearly 300 people have been infected in a new coronavirus outbreak, and six have died. A Chinese government official said the virus, which causes respiratory illness, can be spread from human to human. The virus is reminiscent of the SARS outbreak in 2002 and 2003.
The biggest drag came from HSBC, the banking giant which gets about a third of its revenue from Hong Kong and another 13% from China, according to data provider FactSet. HSBC HSBA, -1.67% shares fell 1.7%. Moody’s separately downgraded Hong Kong over the ongoing protests.
Travel stocks also were weaker, with British Airways owner International Consolidated Airlines Group IAG, -3.71% losing 3.6% and InterContinental Hotels Group IHG, -2.80% falling 2.6%.
EasyJet EZJ, +4.17% rallied nearly 5% as the budget carrier, which doesn’t offer flights to Asia, lifted its fiscal first-half revenue guidance and said it benefited from travel company Thomas Cook’s collapse.
