Summary:
- U.K. unemployment rate remain unchanged in Feb
-
Wise reports strong Q4 with surge in cross-border activity
- Analyst upgrades signal positive outlook for U.K. companies
- Ryanair (LON: 0RYA ) reportedly flags Boeing delays on tariff risk
Investing.com -- British stocks opened higher on Tuesday, extending the previous day’s gains, as investors digested official data showing the U.K. unemployment rate held steady in February, in line with expectations.
As of 0710 GMT, the blue-chip index FTSE 100 rose by 0.5%, while the British pound 0.9% against the dollar to 1.32. In Europe, Germany’s DAX rose by 1.1%, while the CAC 40 in France fell by 0.2%.
Wage growth pressures BoE amid rising economic risk
The Office for National Statistics reported that the unemployment rate held steady at 4.4% in the three months through February, matching expectations and showing no change from the previous reading.
Meanwhile, regular pay across the economy—excluding bonuses—climbed to an annual growth rate of 5.9% during the same period, edging up from a revised 5.8% in January.
Capital Economics noted that although wage growth is still elevated, increasing downside risks to inflation and economic activity, partly due to higher U.S. tariffs, could prompt the Bank of England to shift its focus.
Rather than being chiefly concerned about inflationary pressures from rising pay, the Bank may begin to place greater emphasis on the potential drag on growth. As a result, interest rates might be reduced more quickly than the firm’s current forecast of a decline from 4.50% to 4.00% by year-end.
UK’s Wise sees 28% jump in cross-border volumes in Q4
Wise PLC (LON: WISEa ) shares were slightly up by 0.3% after it announced on Tuesday that cross-border transaction volumes grew by 28% year-over-year in the fourth quarter of its fiscal year 2025, reaching £39.1 billion.
The fintech firm also saw a 15% increase in underlying income on a constant currency basis, bringing the total to £350.4 million for the quarter. Active customer numbers climbed to 9.3 million during the period.
Analysts rating changes on U.K. companies
Several U.K. companies received upgraded ratings from major investment banks, reflecting improved business fundamentals and market outlooks. Barclays upgraded JD Sports Fashion PLC (LON: JD ) to Equal Weight on Tuesday, citing improved capital allocation and a better reflection of risks in the stock’s valuation.
RBC Capital upgraded Rotork PLC (LON: ROR ) to Outperform, noting that while its shares have declined alongside the sector over the past three months, the company’s business mix remains more resilient, both across its end markets and against specific tariff risks.
On Monday, Goldman Sachs (NYSE: GS ) upgraded Next PLC (LON: NXT ) to Buy, highlighting strong international growth, continued outperformance in the U.K. market, and improving supply chain conditions as key drivers of ongoing momentum.
Ryanair flags Boeing delays on tariff risk
In other company news, the Financial News reported that Ryanair Holdings PLC (IR: RYA ) Chief Executive Officer Michael O’Leary has indicated that the airline might push back deliveries of Boeing Co (NYSE: BA ) aircraft if potential U.S. trade tariffs drive up costs significantly.
O’Leary said Ryanair could defer the arrival of 25 planes, currently expected from August, until as late as March or April 2026 should the tariffs come into effect.