FTSE Sees Red as Market Fails to Climb Higher – Job Postings Decline
Indeed job postings declined faster in the UK than peer countries, payroll taxes to add to the decline in 2025.
- Indeed data saw a 23% decline in job postings
- National budget adding £25 billion in pay roll taxes
- BoE policy sentiment sees slower pace in rate cuts
Indeed Releases Job Posting Data
The FTSE lost 0.38% this morning as the market continues to swing in range bound trading. Job postings on the online recruiter Indeed showed a global decline in developed countries. But the UK showed the largest drop of 23% in 2024 as of November 29.
Whereas countries such as U.S. Canada, Germany, and Australia showed declines in between the range of 5% and 15%.
Employers will have more concerns going into 2025 as the Chancellor’s budget introduces a hefty rise in payroll taxes to the tune of £25 billion.
“Employers will likely continue with caution when it comes to hiring in 2025,” Indeed said
The decline in job postings and the negative impact of higher payroll taxes creates a subdued outlook for the economy as we enter 2025.
DAX Live Chart
BoE Set to Slow Pace of Rate Cuts
Market sentiment is beginning to verge towards a slower pace of rate cuts from the central bank. The reduction in the speed of cuts would mean divergence from its main peers, the ECB and the Fed.
Wage rises have shown a sharp increase, according to the Recruitment and Employment Confederation. Today’s data showed that advertised starting salaries went up by 6.7% in 2024 compared to last year.
The data could give the BoE cause for concern and lead to a more prudent monetary loosening cycle. Wage growth has been the main reason why the central bank hasn’t followed the pace of rate cuts by its peers.
As we continue to see wages rising faster than expected, the next rate cut from the BoE could be delayed further.
FSTE Day Chart
FTSE Technical View
The day chart above for the FTSE shows a market that is technically in bullish trend with prices above the Ichimoku cloud.
However, the price action shows a wide sideways range, limited by the all-time high of 8,419 and the recent lows of 7,994. More recently, the past 5 candles show alternating red and green bodies.
The pattern identifies an extremely undecide market with low momentum and unclear target. The nearest support will come at 8,278 (blue line), and further down on the cloud.
To the upside, the market will find immediate resistance at 8,367 level (green line). I expect the range bound activity to continue, unless there is a break above the ATH, or below the recent low of 7,994.
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