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UK Market Upbeat over Report of Rise in Wages

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iShares MSCI United Kingdom ETF rises 2.31%

The stock rally continued from Tuesday, September 15, to Wednesday, September 16, in the UK stock market. The iShares MSCI United Kingdom ETF (EWU) rose 2.31% on September 16.

[marketrealist-chart id=662220]

The above graph shows the movement of the EWU for the month through September 16.

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Wage growth report surprises

According to the Office of National Statistics (or ONS), average weekly earnings went up 2.9% from May to July. The ONS has surprised many analysts with a consensus forecast of a 2.5% increase.

The report also pointed to the addition of 42,000 jobs by employers during the period compared to the estimated 18,000 rise. The jobless rate fell from 5.6% to 5.5% for the three months ended July 2015.

These results are anticipated to contradict with Tuesday’s report, which stated that inflation in the United Kingdom has gone back to zero in the month of August. Regardless of this contradiction, UK investors were upbeat, and we could see the surge in UK stocks for the day.

September 16 experienced a rise in all stocks for the oil and gas drilling and exploration industry. Brent crude saw a rise of 7% on the day. Rising oil prices boosted energy stocks such as Ensco (ESV), Noble (NE), Seadrill Partners (SDLP), Transocean (RIG), and VTTI Energy Partners (VTTI). The stocks earned 4.33%, 6.20%, 2.30%, 4.59%, and 1.44%, respectively, on September 16.

Similarly, the consumer goods industry saw a rise in all its major companies. That includes Travelport Worldwide (TVPT), Unilever (UL), Diageo (DEO), British American Tobacco (BTI), and Michael Kors Holdings (KORS).

Let’s now go through the top and bottom performers of the UK stock market.

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