On Tuesday, London stocks saw a slight increase as investors kept an eye on important domestic inflation data and the upcoming policy decision from the Bank of England. However, gains were limited due to losses in Ashtead Group. The FTSE 100 rose by 0.3%. Over the past few weeks, the index has been fluctuating between 8,100 and 8,200 levels, and there is a possibility of a more significant decline if it falls below 8,100. The mid-cap FTSE 250 also experienced a modest increase.Citi analysts believe that the Bank of England’s decision on a rate cut is evenly balanced between August and September. They anticipate a policy stance that confirms a cautious approach to cutting rates, while still relying on economic data. In terms of individual stocks, Whitbread saw a 3.4% increase after the Premier Inn owner reaffirmed its yearly forecast. The travel and leisure sector led among FTSE 350 sectors, with a 1.6% gain. All FTSE 350 sectors ended the day in positive territory. Ashtead Group experienced the biggest loss on the FTSE 100, with a 4.8% drop following the equipment rental firm’s prediction of slower growth in annual group rental revenue for fiscal 2025.Whitbread Plc, a British hotel group, saw a 4.7% increase in its stock value, making it the top percentage gainer on the FTSE 100 index. The company reiterated its annual forecast after reporting a 1% rise in Q1 revenue to £739 million. Despite a 2% dip in Q1 room revenue in the UK, the company remains positive about the upcoming summer trading season. Derren Nathan, head of equity research at Hargreaves Lansdown, noted that the dip in UK accommodation sales is not a major concern as Whitbread continues to outperform the market. The stock reached a session high, reducing year-to-date losses to approximately 17%.J.P. Morgan has reinstated coverage of UK electronics distributor RS Group with a “neutral” rating and a target price of 780p. As a result, RS Group’s shares have risen by 1.91% to 718.5p. According to J.P. Morgan, RS Group presents a combination of manufacturing recovery and secular growth. The brokerage also noted that the management is focused on enhancing underlying profitability through cost-saving measures and investments in capabilities that could drive sales. J.P. Morgan assumes a return to organic growth in the second half of 2025 and a 6% growth in FY26E. RS Group’s last month reported adjusted pretax profit was 281 million pounds ($356.79 million), slightly higher than the IBES estimate of 276.5 million pounds. The company attributed its financial performance to the weakness in global industrial production and the normalisation of post-pandemic trading tailwinds. As of the last close, the stock is down approximately 14% for the year.
FTSE Bias: Bullish Above Bearish below 8220
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