Tuesday Morning Markets: FTSE 100 Edges Higher as UK Unemployment Steady; Kainos Soars

The FTSE 100 nudged up 0.1% in early Tuesday trading, holding firmer than its European peers, while the domestically-focused FTSE 250 has slipped 0.2%.

On the continent, the DAX fell 0.6%, the CAC 40 dropped 0.3% and the Euro Stoxx 50 lost 0.5%, as investors digested mixed UK data and ongoing geopolitical uncertainty in the Middle East.

UK jobs data showed unemployment held at 4.9% against expectations of a fall to 4.8%, while regular pay growth ran hotter than forecast at 3.5%. ING noted the “cool” labour market data raises questions over the need for a Bank of England rate hike.

In commodities, spot gold has slipped 0.4% to $4,400 an ounce and silver has fallen 0.9% to $65.17. Oil ticked higher, with Brent up 0.2% to $90.97 and WTI gaining 0.5% to $84.12.

The standout mover this morning is Kainos Group, up 18.56% after a trading update revealed upgraded FY27 revenue and profit guidance, with orders strengthening at the Belfast-based IT services group.

Elsewhere, mining giant BHP lifted sentiment after reporting FY2026 revenue of $58.76bn, up 15% year-on-year, alongside record production and a raised final dividend.

Among blue-chips, Centrica (+2.08%), BP (+2.06%) and Whitbread (+1.93%) lead the risers, while Polar Capital Technology Trust (-1.82%), Endeavour Mining (-1.69%) and Lion Finance Group (-1.50%) lag.

In the FTSE 250, PPHE Hotel Group (+3.57%) and AEP Plantations (+3.33%) advanced, while Raspberry Pi Holdings dropped 4.19%, and JPMorgan Japanese Investment Trust (-2.67%) and Schiehallion Fund (-2.27%) also fell back.

In other corporate news, Diageo announced a new board appointment, Frasers Group confirmed results of its Hugo Boss share offer, and Made Tech secured the largest contract in its history.