UK shares opened higher on Tuesday, as slowing domestic wage growth boosted hopes of the Bank of England beginning monetary policy easing this year.

The blue-chip FTSE 100 rose 0.8% and hit its highest level since Feb. 20, as of 0813 GMT, with the pound slipping 0.1% against the dollar.

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.

Money markets are now pricing in around 74 basis points of rate cut from the BoE, up from around 67 bps a day earlier.

Most of the major sectors traded in the green, although homebuilders lost 0.7%, dragged by Persimmon dropping 3.3%, after the homebuilder warned of subdued market conditions throughout this year.

FTSE 100 muted as miners drag; focus on US inflation data

The midcap FTSE 250 edged 0.1% higher, led by a 11.2% surge in TP ICAP, after the broker said it was exploring options for its high-margin data unit Parameta, including the potential listing of a minority stake in the business while retaining ownership.

Markets will now shift focus to the US consumer prices due later in the day for further clues on the Federal Reserve’s interest rate outlook.