FTSE: Job Data Shows Sharp Increase in Hires – Hedge Funds Lose Investor Appeal

New hires showed a large increase in jobs, giving investors concerns about the timing of the BoE’s next rate cut.

Data released today showed jobs jumped to 265k from last month’s 97k, with analysts expecting an increase of 115k. This type of news is usually positive, but in the current environment it may be seen the opposite.

The market is more bullish about an interest cut sooner than later, and strong jobs data may delay their wishes. The FTSE is down 0.41% despite the positive economic data, in a show of just how little an expanding jobs market can drive investor sentiment.

Goldman Sachs reported that UK hedge funds experienced net outflows for the first time in 7 years. The decline was strongest for multi-strategy managers, where fewer investors were willing to accept the high fees.

Overall, net outflows for the first half of 2024 equaled 1.5% of assets managed. Systematic investing strategies managed to keep their capital, excluding this category net outflows equaled 1.1% of managed assets.

The decline is seen as a concern of investors on the high fees, often reaching 58% of total return. But it may also show that the market is not so bullish on stock performance to accept high fees.

Technical View

The day chart above for the FTSE shows a market in a wide sideways trend. The tops and bottoms of the range are constrained by the two recent highs at 8,411 (red line) and the recent dip at 7,910 (grey line).

The market action has attempted to reach new highs but failed at the resistance of the recent high at 8,411.

The market has now found support on the cloud, as it has in previous weeks. The RSI shows low momentum, with the range and high of this indicator between 36 and 62 since May.