The UK unemployment rate reached its highest level in nearly five years and layoffs hit record highs, new economic data showed on Tuesday. The UK unemployment rate in the three months to November rose 0.6% from the previous quarter to 5%, the highest level since mid-2016, when the country plunged into a second national lockdown. The redundancy rate during that period reached a record 14.2 per 1,000.
The International Monetary Fund lowered its guidance on the UK’s economic recovery in its latest forecast on Tuesday, projecting real gross domestic product growth of 4.5% in 2021 after an estimated 10% contraction in 2020. The IMF had previously forecast. this year’s economic growth for the UK. at 5.9% in October 2020. But the pessimistic data did not prevent London markets from joining the pan-European rally, reversing two days of declines. UK stock earnings fell below the 2% gain for the DAX DAX in Frankfurt, + 1.86% and 1.5% for the CAC 40 PX1, + 1.32% in Paris. Both the FTSE 100 UKX, + 0.78%, the index of London’s top stocks by market capitalization, and the FTSE 250 MCX mid-cap, + 0.81% were up 0.8% on Tuesday. “Equity markets are recovering the losses that were witnessed yesterday. The sentiment is much more positive this morning despite the same fears persisting. It appears that economic activity in many of the major European countries will remain under pressure in the short term, as there are tighter restrictions, ”said David Madden, analyst at CMC Markets. Also read: Virus concerns are evident among the UK’s smaller companies. Travel stocks were among the winners in London, rebounding from Monday’s heavy losses that were driven by reports of some travelers arriving in the UK. Kingdom will have to quarantine in hotels The government is expected to announce a detailed plan for new travel restrictions later on Tuesday or Wednesday. The shares of the airlines Ryanair RYA, + 2.60%, easyJet EZJ, + 0.63%, and IAG IAG, + 0.43%, owner of British Airways, soared, as did InterContinental Hotels Group IHG, + 1.29% in shares. Any new travel restrictions would come as the UK leaps ahead of its European peers in the COVID-19 vaccination race. The country leads the main economies of the world in terms of percentage of vaccinated population. Around seven million people in the UK have received at least one of the two doses of vaccine, representing more than 10% of the population. The country is approaching the milestone of 100,000 recorded deaths from COVID-19. Also: UK doctors seek a review of the 12-week gap between vaccine doses “The UK has suffered a lot in terms of case numbers, but there is some hope on the horizon as the country has issued more than 7 million vaccines, which puts it well ahead of Germany, France, Italy and Spain, ”said Madden. “The upbeat mood in stocks today could be because a lot of negative news has already been introduced to the markets.” Publishing and educational giant Pearson PSON, + 5.24% led the FTSE 100’s climb to green. Moving up 5%, the stock continued its rally since January 20, when it posted upbeat earnings showing the company had returned to sales growth. With oil prices nearing 11-month highs, and Brent at $ 56.13 a barrel, London-listed Big Oil BP BP + 2.23% and Royal Dutch Shell RDSA +2, 20% are older. Shares of British engineer Rolls-Royce RR, -1.20% fell close to 2%, reducing losses of 10% after the open and continuing the downtrend since Monday. The group warned in a business update that the free cash outflow in 2021 will be around £ 2bn ($ 2.7bn), more than expected.