UK stocks opened lower this morning, tracking declines across Europe as trade tensions creep back into focus. After a stretch of relative calm, headline risk is making conditions jumpy again and markets are back in the web of reacting to social media posts. But with earnings season kicking off, both at home and across the pond, there are more traditional catalysts on the horizon.
This morning’s UK wage growth data has left investors to mull over some mixed signals. Private sector pay, excluding bonuses, slowed slightly, but overall earnings still rose 5.0% in the three months to August. That pace is far too hot for the Bank of England to feel comfortable, meaning rate cuts look unlikely before 2026.
For companies, higher wages keep cost pressures alive, while for households, real pay is creeping higher. This offers a slow but steady boost to affordability – good news for mortgage lenders and a small tailwind for housing demand in what remains a gusty market.
Article Source – Hargreaves Lansdown – Matt Britzman – Senior Equity Analyst
