economy
February 17, 2026
Sterling Falls as UK Unemployment Hits Highest Rate in Five Years
European stocks closed broadly higher on Tuesday as investors keep an eye on earnings.
TL;DR
- UK unemployment rate rose to 5.2% in December, the highest level since January 2021.
- The number of payrolled workers in the UK fell by 134,000 year-on-year in January 2026.
- Sterling fell against the dollar and the euro following the jobs data.
- British government bond yields (gilts) decreased across the curve.
- Bank of England futures are now pricing in two interest rate cuts this year.
- BHP Group shares rose 1.5% after announcing a $4.3 billion silver deal and strong first-half earnings.
- German inflation increased to 2.1% in January.
- European stock markets generally closed higher, with Wall Street trading near flat.
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