FTSE Keeps Climbing on Wage Growth Expectations

The U.K. will see its first real wage growth this year since 2007, a survey on Monday showed, in the latest upbeat economic news that has helped push the blue-chip FTSE-100 stock index to within striking distance of record highs.

Real wages—or income adjusted for inflation—are set to rise 1.9 percent this year and accelerate from there, economic forecaster EY ITEM Club said in a report on the labor market.

It marks yet another piece of positive news for the U.K. economy, and on Monday, the U.K.’s benchmark index rose as high as 6,943 – within sight of a record high set in late 1999 at 6,950.

News on Friday that euro zone negotiators agreed to extend Greece’s bailout package also helps explain the strong gains in the index, analysts said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza