UK wage growth slightly weaker than expected
Persimmon falls on flagging subdued market conditions
FTSE 100 up 0.8, FTSE 250 adds 0.2

March 12 Reuters UK shares advanced on Tuesday, buoyed by a slip in the pound and bond yields as slowing domestic wage growth boosted hopes that the Bank of England may begin monetary policy easing this year.

The bluechip FTSE 100 rose 0.8 and hit its highest level since Feb. 20, as of 0915 GMT.

Data showed British wages excluding bonuses grew at their slowest pace since October 2022 during the three months to the end of January, while the unemployment rate edged up unexpectedly.

The yield on the benchmark 10year gilt fell after the data, last at 3.941, while the pound slipped 0.2, propping up equities.

When you start to see anything which suggests unemployment is ticking up, that does have a marginal impact on equities, said Danni Hewson, head of financial analysis at AJ Bell.

But investors are not wanting to get too caught up … the bigger move is likely to be seen when we get inflation numbers from the States.

The U.S. consumer prices is due later in the day, which could further give insights into the Federal Reserve39;s interest rate outlook and potentially set the tone for global central banks.

Money markets are now pricing in around 75 basis points bps of rate cut from the BoE, up from around 67 bps a day earlier. 0BOEWATCH

Life insurers and ratesensitive lenders led sectoral advances, up around 1.8 each, while…