UKX FTSE 100 Index

By Carla Mozee, MarketWatch

U.K. jobs and wages data on deck; Carney to speak

U.K. stocks stepped lower Wednesday, as gains for Lloyds Banking Group PLC and miner Glencore PLC failed to offset wider losses. The companies were higher after well-received earnings reports.

The action in London echoed the losing tone set by U.S. stocks, which snapped a win streak on Tuesday.

An update on the British jobs market is on deck, as is parliamentary testimony by policy makers from the Bank of England.

How markets are moving

The FTSE 100 index shed 0.3% to trade at 7,223.45, led by falls for health care and technology stocks. The financial sector was higher, and the utilities group was clinging to thin gains. On Tuesday, the index closed down less than 1 point (http://www.marketwatch.com/story/ftse-100-sags-as-investors-hesitate-after-hsbc-bhp-results-2018-02-20).

The poundtraded at $1.3960, down from $1.3997 late Tuesday in New York.

The yield on the 10-year giltwas down 1 basis point to 1.55%, according to Tradeweb. Yields fall when prices rise.

Check out: More investors looking to cut U.K. assets as Brexit uncertainty persists (http://www.marketwatch.com/story/more-investors-looking-to-cut-uk-assets-as-brexit-uncertainty-persists-2018-02-16)

What's driving markets

U.K. stocks were following the track laid down by Wall Street, which was at the fore of a selloff in global equities earlier this month. U.S. stocks snapped a six-day winning streak (http://www.marketwatch.com/story/dow-futures-fall-more-than-100-points-signaling-jittery-return-to-trading-2018-02-20) on the market's return from holiday Tuesday, as a slide in shares of retailer Walmart Inc. (WMT) weighed on the S&P 500 Index .

In focus is the release of fresh British labor-market data, seen as playing a part in the BOE's decision making on the path of interest rates. In November, the central bank in November raised rates for the first time in a decade, in the face of hotter inflation.

Further hints on monetary policy may come may come in BOE Governor Mark Carney's comments on U.K inflation to a parliamentary committee.

What strategists are saying

"There has been little in the way of economic data for pound or dollar traders to digest in the early part of this week. This looks set to change today, as U.K. wage data and [Federal Reserve] minutes come into focus," wrote Jasper Lawler, London Capital Group's head of research.

"Negative real earnings growth is a key factor as to why the BOE has shown caution over raising interest rates. Hiking too quickly can actually dampen wage growth further, the opposite effect of what the central bank is looking for. Therefore investors will be watching the figures carefully to see whether the squeeze on the consumer is increasing or receding," Lawler said in a note.

Economic data

The December jobs data is expected to show average weekly earnings grew by 2.4%, both excluding and including bonuses, according to a FactSet consensus estimate. The unemployment rate is projected to remain at 4.3%. The report is due from the Office for National Statistics at 9:30 a.m. London time, or 4:30 a.m. Eastern Time.

Carney will appear alongside other BOE policy makers to discuss the February Inflation Report with the Treasury Select Committee, in London at 2:15 p.m. London time, or 9 a.m. Eastern Time.

The release of minutes from the Federal Reserve's January policy meeting, the last chaired by Janet Yellen, comes after the close of London trading at 2 p.m. Eastern Time, or 7 p.m. London time. These will be combed for clues to the central bank's thinking on interest rates, which can have a knock-on effect on global financial markets.

Read:Five things to watch in the Fed minutes (http://www.marketwatch.com/story/five-things-to-watch-in-the-fed-minutes-2018-02-20)

Stock movers

Lloyds Banking Group PLC shares (LLOY.LN) rose 1.1% after the lender said it's launching a share buyback of up to GBP1 billion ($1.40 billion) (http://www.marketwatch.com/story/lloyds-launches-1-billion-buyback-2017-profit-up-2018-02-21). In the bank's first full-year results since returning to full private ownership, pretax profit of GBP5.28 billion for 2017 missed expectations of GBP5.89 billion.

Glencore PLC shares (GLEN.LN) rose 1.3%. The miner and commodities trader posted a more than fourfold rise in 2017 net profit for 2017 (http://www.marketwatch.com/story/glencore-profit-up-fourfold-for-2017-beats-views-2018-02-21), of $5.78 billion, and said it was considering acquisitions.

Barratt Developments PLC shares (BDEV.LN) gained 1% after the company raised both its regular and special dividends (http://www.marketwatch.com/story/barratt-lifts-dividends-after-profit-rises-2018-02-21) . The home builder said first-half pretax profit rose as it sold more plots at higher prices.

(END) Dow Jones Newswires

February 21, 2018 04:28 ET (09:28 GMT)

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