The FTSE 100 (^FTSE) and European stocks were mixed on Tuesday, following wage and jobs data that could leave the Bank of England scratching its head at the next interest rate setting meeting.

London's premier index rose 0.2% in early trade, supported by major banking stocks. The more domestically focused FTSE 250 (^FTMC) was also up 0.2%. Germany's DAX (^GDAXI) fell 0.1% ahead of its ZEW economic sentiment index readings released later this morning. Over in France, the CAC 40 (^FCHI) fell slightly. The pan-European STOXX 600 (^STOXX) hovered above the flatline. The pound (GBPUSD=X) reversed gains made against the dollar on Monday, falling 0.6% to trade above thee $1.22 mark. The moves come following fresh data which shows real pay in the UK has risen at its fastest rate for more than three years on average, driven by strong wage growth in the private sector. Wage inflation is a measure watched closely by the Bank of England due to its potential for knock-on price rises in the rest of the economy. Pay packets increased on average by 3.4% on the year. The Office for National Statistics said private sector pay growth outstripped that of the public sector.

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46 mins ago

Lucy Harley-McKeown

Reeves in Davos

Rachel Reeves has headed to Davos for the World Economic Forum to meet banking bosses and tout the UK as an investment opportunity, PA reported.

Business secretary Jonathan Reynolds will also meet with corporate chiefs and foreign trade ministers.

Reeves said: 53 mins ago

Lucy Harley-McKeown

FTSE banking stocks higher in early trade

The top gainers as the index owners are banking stocks. 1 hr ago

Lucy Harley-McKeown

Housing stocks set for boost from property boom

Vicky McKeever writes:

As new data gives an optimistic outlook for the UK property market in 2025, here are some of stocks that could benefit from the sector's rebound.

The latest closely-watched survey from the Royal Institution from the Chartered Surveyors (RICS), published on Thursday, showed that many estate agents and other professionals in the sector expect property sales and house prices to rise in 2025.

A net balance of 37% of respondents to the December survey said they foresaw sales activity rising over the next 12 months, while a net balance of 53% envisaged prices climbing higher over the year ahead.

Read more on Yahoo Finance UK Today at 8:10 AM UTC

Lucy Harley-McKeown

How US stocks are faring in premarket

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Stocks are trading cautiously higher in US premarket. Today at 8:09 AM UTC

Lucy Harley-McKeown

Overnight in the US: Trump is in and wants a 25% Mexico and Canada tariff

Markets were closed in the US on Monday for MLK day. It was also Donald Trump's inauguration as president, which went off without a hitch.

Among his first moves have been to block the TikTok ban and hint at new tariffs on neighbouring countries.

"We are thinking in terms of 25% on Mexico and Canada," he said while signing a slew of executive orders in the Oval Office, and added that they could happen soon.

"I think we are going to do it on February 1," he said.

He also suggested that blanket tariffs remain on the table but could be farther off, saying all countries rip off the United States to some extent. Today at 8:06 AM UTC

Lucy Harley-McKeown

Good morning!

Hello from London. Lucy Harley-McKeown here ready to bring you the latest business and markets news of the day.

This morning we've already had UK jobs data — usually a signal for what will come up at the next Bank of England rate setting meeting.

At 10am, Germany's ZEW economic sentiment index is released.

The World Economic Forum also kicks off in Switzerland today, so expect some world leader-related headlines.

Let's get to it.

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