Stoxx 600, FTSE, DAX, CAC, miner earnings, data

LONDON — Sterling dipped and British government bond yields fell Tuesday morning after data showed the UK’s unemployment rate rose to a five-year high while wage growth slowed.

The pan-European Stoxx 600 hovered above the flatline as of 9:17 a.m. GMT (4:17 a.m. ET), with Italy’s FTSE MIB also adding nearly 0.4%. France’s CAC 40 rose nearly 0.2%, and Germany’s DAX was up 0.1%.

The UK’s FTSE 100 was up nearly 0.5% shortly after the market opened. Sterling fell against the dollar, last down 0.2% to trade at $1.359, after the UK’s earnings and employment report showed that the number of payrolled workers fell 0.4% on a yearly basis to 30.3 million in January 2026.

That’s 134,000 fewer employees since January 2025 and down 11,000 from the previous month. Meanwhile, the unemployment rate rose to 5.2% in December, up from 5.1% a month earlier. The pound was last down 0.2% against the Euro.

UK unemployment is now at its “highest level” since January 2021, hitting a five-year high, Samuel Fuller, director of Financial Markets Online, said.

British government bond yields, known as gilts, were down following the release of the jobs data. The 10-year Gilt was down 3 basis points to 4.368%, while the 2-year Gilt shed 2 basis points to 3.563%.

Bank of England futures are now fully pricing two cuts this year, with a 75% chance of a cut next month after the release of the unemployment figures.

“With Britain’s economy almost flatlining and the labour market weakening, falling inflation will be the final piece of the puzzle needed for the Bank’s ratesetting committee to pull the monetary stimulus lever,” Fuller added.

Earnings remain in focus for investors. Miners Antofagasta and BHP Group released earnings on Tuesday, as well as InterContinental Hotels Group.

BHP shares were nearly 0.6% higher after it announced a record silver deal with Wheaton Precious Metals on Tuesday. The mining giant said the long-term silver streaming agreement would see BHP receive an upfront payment of $4.3 billion at completion.

BHP also posted stronger-than-expected earnings for its fiscal first half, driven by strong performance in its copper operations.

German inflation came in at 2.1% in January, up from 1.8% the previous month, the German Federal Statistical Office reported on Tuesday.  “The rise in overall consumer prices intensified at the start of the year,” Ruth Brand, president of the Federal Statistical Office, said in the release.

Overnight, S&P 500 futures were near flat following two straight negative weeks for the benchmark; U.S markets were shut on Monday for Presidents’ Day.

Asian financial markets were treading carefully on Tuesday in holiday-thinned trading, with markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea closed on Tuesday for Lunar New Year.