(Sharecast News) - London stocks edged a little higher in early trade on Tuesday despite grim UK jobs data and concerns about the Covid-19 crisis, as the capital was set to be plunged into Tier 3.
At 0920 GMT, the FTSE 100 was up 0.4% at 6,554.74.

Market participants were mulling the latest figures from the Office for National Statistics, which showed the unemployment rate ticked higher in October while redundancies rose to a record high as the coronavirus pandemic continued to take its toll.

Redundancies came in at 370,000, which was an increase of a record 217,000 on the quarter. The unemployment rate rose to 4.9% from 4.8%, although this was a little better than expectations of 5.1%.

The data also showed that since February, 819,000 fewer people were in payrolled employment.

ONS director of economic statistics Darren Morgan said: "Overall we have seen a continuation of recent trends, with a further weakening in the labour market.

"The latest monthly tax numbers show over 800,000 fewer employees on the payroll in November than in February, with new analysis finding that over a third of this fall came from the hospitality sector.

"In the three months to October, employment was still falling sharply and unemployment was rising, but the number of people neither working nor looking for work was little changed. Average hours per worker were continuing to recover, though this was before the second lockdown in England.

"While there was another record rise in redundancies in the latest three months as a whole, they began to ease during October."

Laith Khalaf, financial analyst at AJ Bell, said: "There's no flattening in the curve of redundancies at the moment, despite the last minute extension of the furlough scheme. The latest data provides a picture of activity in the labour market before an effective vaccine was announced and that news in itself may serve to save some jobs, as it gives businesses a bit of light at the end of the tunnel.

"However, the outlook is still for rising unemployment and London's move into a Tier 3 zone further undermines business and job security and highlights how the economy is still vulnerable to the ebb and flow of the pandemic. The OBR expects unemployment to peak at 7.5% in the second quarter next year, which unfortunately means significantly more job losses in the next few months."

In equity markets, JD Sports Fashion rallied after saying it has bought US-based Shoe Palace for $325m along with an equity share in the enlarged group for the company's founders.

Chemring was also on the rise as it posted a jump in full-year profit and revenue.

On the downside, Rolls-Royce was under the cosh after a downgrade to 'sell' at Panmure Gordon.

Airtel Africa plunged after an institutional investor sold 60 million shares in the telecommunications provider in a placing.

Market Movers

FTSE 100 (UKX) 6,554.74 0.35%
FTSE 250 (MCX) 19,779.26 0.08%
techMARK (TASX) 4,069.56 0.06%

FTSE 100 - Risers

JD Sports Fashion (JD.) 835.00p 5.62%
Royal Dutch Shell 'A' (RDSA) 1,388.80p 2.10%
Royal Dutch Shell 'B' (RDSB) 1,335.60p 2.00%
BP (BP.) 275.00p 1.95%
Melrose Industries (MRO) 166.10p 1.90%
Ashtead Group (AHT) 3,410.00p 1.85%
Polymetal International (POLY) 1,644.00p 1.80%
Evraz (EVR) 463.20p 1.74%
B&M European Value Retail S.A. (DI) (BME) 519.60p 1.68%
Mondi (MNDI) 1,814.50p 1.65%

FTSE 100 - Fallers

Rightmove (RMV) 635.80p -2.63%
Rolls-Royce Holdings (RR.) 115.65p -2.61%
Informa (INF) 543.40p -1.98%
Standard Chartered (STAN) 467.20p -1.58%
Berkeley Group Holdings (The) (BKG) 4,267.00p -1.34%
HSBC Holdings (HSBA) 398.05p -1.33%
International Consolidated Airlines Group SA (CDI) (IAG) 155.00p -1.24%
AstraZeneca (AZN) 7,599.00p -1.21%
SEGRO (SGRO) 899.60p -1.01%
Hikma Pharmaceuticals (HIK) 2,492.00p -0.95%

FTSE 250 - Risers

Chemring Group (CHG) 309.00p 14.02%
Aston Martin Lagonda Global Holdings (AML) 1,577.60p 3.17%
RHI Magnesita N.V. (DI) (RHIM) 3,424.00p 2.51%
TUI AG Reg Shs (DI) (TUI) 416.80p 2.21%
Hochschild Mining (HOC) 191.30p 2.19%
Rotork (ROR) 302.20p 2.16%
4Imprint Group (FOUR) 2,640.00p 2.13%
IG Group Holdings (IGG) 845.50p 2.11%
Petrofac Ltd. (PFC) 168.25p 2.03%
888 Holdings (888) 278.50p 2.01%

FTSE 250 - Fallers

Airtel Africa (AAF) 74.40p -19.31%
Shaftesbury (SHB) 522.50p -4.83%
Capital & Counties Properties (CAPC) 137.50p -4.25%
Ascential (ASCL) 350.80p -2.83%
St. Modwen Properties (SMP) 369.00p -2.51%
Cineworld Group (CINE) 62.40p -2.50%
Fisher (James) & Sons (FSJ) 875.00p -2.45%
Network International Holdings (NETW) 296.20p -2.31%
Coats Group (COA) 70.20p -2.23%
easyJet (EZJ) 807.60p -2.11%