UK unemployment rose in the three months through October as a softening labour market added to the Bank of England’s policy dilemma ahead of its final interest rate decision of the year.

Markets saw a classic bull trap with early S&P 500 gains reversing sharply, as attention shifted to weak jobs data and bond and dollar signals to determine whether further downside or a rebound comes next.

The composite PMI dropped from 52.8 to 51.9 in December, with manufacturing output declining again.