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The FTSE 100 was stuck in the mud as the rest of Europe ploughed ahead at the end of the trading week.
Strength in consumer stocks and utilities was offset by weakness in miners and healthcare.
Gold miners sold off as investors took some profits following the storming run for the metal price. There was bound to be a pullback at some point given gold’s rapid ascent.
It was also notable that defence stocks were being sold down, including Babcock which has rocketed this year.
When there’s doom and gloom in the world, investors often go through brief periods where they crystalise gains. The key question is whether that money will get recycled into other areas, which could easily happen if equity markets continue to push higher, or if people are starting to build a war chest so they can go bargain hunting if we do get a market correction.
Hays / recruitment market
The jobs market still looks tough, judging by Hays’ latest figures. The recruitment agency reported a decline in net fees across its operating regions around the world over the past three months versus last year.
Permanent jobs was the weakest area, suggesting employers aren’t feeling confident enough to bring in full-time workers. Instead, they’re looking for more flexible options such as contractors or temporary posts.
It also looks like companies are taking longer to make hiring decisions, creating a perfect storm for recruitment consultants like Hays which rely on high levels of activity to make good money.
Hays suggests the jobs market blues will continue well into 2026. That certainly looks plausible in the UK given what’s going on. So much uncertainty around what might be in the Budget at the end of November will be giving many companies the chills, putting a freeze on their hiring plans until they know the lay of the land.
The Recruitment and Employment Confederation’s latest survey shows a ‘marked drop’ in demand for staff, together with reports of redundancies and more candidates looking for work. The British Chambers of Commerce says UK firms are feeling ‘bruised’ and sentiment is weak, with key worries being tax and inflation.
Despite all this doom and gloom, Hays’ share price went up on its trading update. So much bad news was already in the price and there were morsels of good news buried in the statement. Chief executive Dirk Hahn appears to be keeping his chin up and the implied message of ‘we’ll get through this and prosper later on’ appears to have been duly noted by the market.
Ibstock
“So much for the government’s drive to get ‘Britain building again’. Brickmaker Ibstock has disappointed the market with its update earnings guidance after revealing a series of headwinds. Market activity is lower than it would like, and pricing looks like it is too soft to hit its targets.”
Russ Mould: Investment Director
Russ Mould is AJ Bell's Investment Director. He has a Master's degree in Modern History from the University of Oxford and more than 30 years' experience of the capital markets.
He started out at Scottish...
