The UK employment report showed a steady jobless rate and stronger hiring in the three months to May, although the market reaction stayed limited.
The unemployment rate held at 4.9%, according to the report. Employment rose by 147,000 over the period. Meanwhile, total pay growth slowed to 4.3%, which pointed to easing wage pressure.
However, the data did not shift interest rate expectations. As a result, traders showed only a muted response during the European session. The source described the session as calm, with light data and limited news flow.
UK Employment Report Keeps Market Calm
The UK employment report was the main scheduled release in Europe. Even so, it did not change the broader market tone. Investors instead kept their attention on developments tied to Iran and the Strait of Hormuz.
Iran said any move to reopen the strait would depend on security conditions. However, Tehran gave no timeline for a return to normal shipping. It also said the strait would stay closed at least until a possible ceasefire is secured.
German Sentiment Jumps Despite Iran Risks
Germany also released fresh survey data during the session. The ZEW economic sentiment index climbed to 26.3 from 10.5. The reading came in well above forecasts and showed rising optimism around the government’s reform agenda and the recovery.
However, the survey also flagged risks to the outlook. It said uncertainty linked to the Iran conflict and oil prices still posed a major threat, despite the stronger sentiment reading.
Later in the day, the American session was set to feature the weekly US ADP employment change. The source said that report moved markets when it first appeared in October 2025. However, that effect faded after the US labour market stabilized.
The source said the main focus would remain on US-Iran headlines.
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Source: InvestingLive
