# UK’s FTSE 100 gets a lift from commodities as U.S. inflation data looms Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-13 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UK's FTSE 100 Edges Up in Response to Mixed Labour Meta Description: FTSE 100 index ticks up in choppy trading on gains in commodity shares, while mixed labour data poses inflation headache for Bank of England. URL: https://financedigest.com/uks-ftse-100-gets-a-lift-from-commodities-as-u-s-inflation-data-loomshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-13t073728z1lynxmpei8c0btrtroptp4britain-stocks-1736815227567-compressed.jpg) By Bansari Mayur Kamdar and Johann M Cherian (Reuters) – UK’s main index ticked up in choppy trading on Tuesday on gains in commodity linked shares, while mixed labour market data pointed to more headache for the Bank of England looking to rein in surging inflation. Global investors are also closely tracking crucial inflation figures from the United States ahead of the Federal Reserve’s policy meeting next week. Hopes that the reading would add to recent indications that [inflation had peaked buoyed Asian markets](https://www.financedigest.com/hungarys-booming-wedding-market-doused-by-soaring-inflation.html "Hungary’s booming wedding market doused by soaring inflation") earlier in the day. The benchmark FTSE 100 index rose 0.2% at 8:15 GMT. Mining [stocks added 1.1% to extend a three-day rally as a weaker dollar](https://www.financedigest.com/stocks-and-gold-cheer-u-s-inflation-picture-while-dollar-slides.html "Stocks and gold cheer U.S. inflation picture, while dollar slides") boosted metal prices. Oil majors BP and Shell gained 1.3% and 0.8% respectively, as crude prices climbed on concerns over [tight supply](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says"). Data on Tuesday showed Britain’s unemployment rate fell to its lowest since 1974 at 3.6% in the three months to July as more people left the labour market, while wages [picked up pace adding to signs of price](https://www.financedigest.com/euro-zone-inflation-eases-in-feb-but-core-prices-pick-up.html "Euro zone inflation eases in Feb but core prices pick up") pressures. It was a strong set of numbers and the (central) [bank will be particularly concerned about the wages figures that again have come](https://www.financedigest.com/why-pay-by-bank-app-will-come-into-its-own-in-2022.html "Why Pay by Bank App will come into its own in 2022 ") in on the strong side,” said Stuart Cole, head macro economist at Equiti Capital. The argument is certainly there for continued aggressive tightening in interest rates because the wages itself are indicative of an underlying [boost to inflation](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins") in the UK. Traders now [see an 80% chance of a 75 basis-point hike by the BoE next](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") week. Meanwhile, grocery [inflation hit 12.4% in the four weeks](https://www.financedigest.com/dollar-dips-ahead-of-inflation-data-later-this-week.html "Dollar dips ahead of inflation data later this week") to Sept. 4, another record, adding 571 pounds ($670) to the [average annual grocery bill](https://www.financedigest.com/average-annual-uk-food-bill-set-to-rise-454-pounds-as-inflation-soars.html "Average annual UK food bill set to rise 454 pounds as inflation soars"), according to market researcher Kantar. Ocado Group and Marks & Spencer fell 12.2% and 2.2%, respectively, after their joint venture Ocado Retail downgraded its full-year outlook, saying [customers are trying to navigate the cost of living crisis by buying](https://www.financedigest.com/should-insurers-buy-data-direct-from-their-customers.html "Should insurers buy data direct from their customers?") fewer products and trading down to cheaper items. The retail sector, among the [worst performing sectors this year](https://www.financedigest.com/europe-facing-its-worst-drought-in-500-years-study.html "Europe facing its worst drought in 500 years – study"), declined 1.2%. Retail has tumbled 30.7% so far in 2022, as shoppers tightened their belts in the [face of rising prices](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation"). [Banks eased](https://www.financedigest.com/analysis-china-central-bank-under-pressure-to-ease-is-hemmed-in-by-inflation-fed-jitters.html "Analysis-China central bank, under pressure to ease, is hemmed-in by inflation, Fed jitters") 0.4%, snapping a three-day rally. Aveva Group Plc gained 3.1% after Sky News reported that French industrial group Schneider Electric was [nearing a deal](https://www.financedigest.com/endeavor-nears-deal-to-buy-vince-mcmahons-wwe-sources.html "Endeavor nears deal to buy Vince McMahon’s WWE -sources") to take full control of the British software company for about 3.5 billion pounds ($4.1 billion). (Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Sriraj Kalluvila) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---