The FTSE 100 was up 0.6% at 9am, supported by stable UK unemployment data and anticipation of the European Central Bank's interest rate decision. The Office for National Statistics reported that the UK's unemployment rate held steady at 4.4% for the three months to May, while average regular earnings growth dipped to 5.7%.

British wages, excluding bonuses, increased by 5.7% in the three months ending in May compared to the same period last year. This figure aligns with economists' forecasts and serves as a key indicator for the BoE as it considers future interest rate cuts. The BoE's next rate announcement is scheduled for August 1. Following stronger-than-expected inflation data, investors now see a roughly one-in-three chance of a rate cut.

Energy shares were among the top gainers this morning, driven by higher oil prices. The investment banking and brokerage sector also performed well. In corporate news, Frasers Group, the British sportswear and apparel retailer, posted a 13.1% rise in annual adjusted pretax profit to £544.8 million for the year ending April 28. It expects profits between £575 million and £625 million for the next financial year.

Diploma Plc saw a 3.3% decline after maintaining its full-year outlook. Dunelm Group's shares surged 8.3% following a forecast of slightly higher annual profit than market consensus. AJ Bell gained 4.6% after reporting a 20% rise in third-quarter assets under administration for its Platform business.

Across the pond, US President Joe Biden tested positive for Covid-19 with mild symptoms. This comes shortly after he mentioned he would consider dropping his re-election bid if diagnosed with a serious medical condition. The infection has led to the cancellation of a scheduled speech to a union representing Latino workers.

Things to read today: