The FTSE 100 managed to make gains despite a record fall in UK workers’ earnings, as commodity stocks were boosted by trebling profits at BHP, which helped to overshadow fragility in the Chinese economy.

The blue-chip index added 0.3%, or 25 points, to trade at 7,534 this morning despite a host of downbeat data. The Office for National Statistics (ONS) reported that earnings fell a record 3% in the second quarter after adjusting for soaring inflation. In nominal terms, regular pay was up 4.7% over the three-month period, but that still failed to cover the impact of rapidly rising prices.

The ONS also reported a cooling in the jobs market, as the unemployment rate sat unchanged at 3.8% but the number of vacancies fell for the first time since 2020.

The cooling in the labour market adds further fuel to recession fears in the UK. That is part of a wider picture of global growth concerns, which were added to by a fresh slowdown in the Chinese economy reported yesterday.

Susannah Streeter, a senior investment analyst at Hargreaves Lansdown, said: ‘Worry is growing about the darkening prospects for global growth as economies slow around the world, pushing down oil prices in expectations of lower demand.

‘The benchmark Brent crude fell back to below $94 a barrel, to a level it was last at in February, amid worries China’s recent weakness will persist and that rampant inflation will cause consumers and companies elsewhere to cut back expenditure.’

Despite the drop in oil, commodity stocks were buoyant this morning, after BHP – which delisted from the UK stock market earlier this year, leaving its main listing in Australia – reported pre-tax profits had tripled due to soaring coal and copper prices.

That pushed UK mining and oil stocks higher on the read-across:

• Glencore (GLEN) was up 1.7%, or 7p, to 472p;
• Anglo American (AAL) rose 1.4%, or 41p, to £29.42;
• Rio Tinto (RIO) gained 1.4%, or 69p, to £48.04;
• And Antofagasta (ANTO) advanced 1.1%, or 12p, to £11.43.

Darktrace shines on bid

The FTSE 250 was flat, up just 9 points at 20,392 this morning, although Darktrace (DARK) did its best to bolster the mid-caps.

Shares in the artificial intelligence cybersecurity group leapt 20%, or 83p, to trade at 498p after private equity firm Thoma Bravo made an approach for the company in a bid to take it private. Darktrace only listed last year, with a market value of £1.7bn – it is now valued at just under £3bn.

Victoria Scholar, head of investment at Interactive investor, said it had been a tough year for M&A and new listings given the volatile market.

‘Perhaps a privatisation of Darktrace is the best way to avoid the uncertainty of this year’s market gyrations, with the potential to float the company once again in the coming years once confidence is restored in equities,’ she said.

Seraphim slips

Among investment trusts, Seraphim Space (SSIT ) slid another 4% to 55.6p after yesterday’s 4.5% decline following the termination by portfolio company D-Orbit of its proposed merger with Breeze Holdings, a special purpose acquisition company listed on the US technology Nasdaq exchange.

HarbourVest Global Private Equity (HVPE ) slipped 1.2% to £24.16 at a 38% discount to net asset value as it lifted its credit facility to $800m from $700m.