FTSE Breaking Hat Trick Of Gains Ahead Of UK Inflation Data -

FTSE Breaking Hat Trick Of Gains Ahead Of UK Inflation Data

Jul 16, 2024Jeremy ParkinsonFinance, No picture0

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On Tuesday, London’s FTSE 100 experienced a one-week low due to overall market weakness, leading investors to approach with caution ahead of domestic inflation data and earnings reports. The blue-chip FSE 100 index dropped by 0.18%, while the mid-cap FTSE 250 also decreased, signalling the end of three consecutive sessions of gains. The personal goods sector saw the largest decline of 2.3%, following a previous session where it hit a low not seen in over 14 years. Burberry suffered the most with a 3.3% decrease, adding to its 16% loss from the previous day. London-listed shares of mining giant Rio Tinto fell by 2% after reporting lower-than-expected second-quarter iron ore shipments. This decline also affected industrial metal miners, causing a 1.3% drop. Additionally, other copper miners mirrored the decrease in metal prices. This week, the focus will be on domestic consumer prices and producer prices data, as the Bank of England’s upcoming monetary policy decision approaches. Markets are currently pricing in a 50% chance of a rate cut in August, despite inflation data showing a decrease to the BoE’s target of 2%. This uncertainty is fueled by hawkish comments from certain policymakers and global political instability. Furthermore, expectations for a U.S. rate cut in September were reinforced after Federal Reserve Chair Jerome Powell stated on Monday that the three inflation readings from the second quarter indicated “more progress” towards reaching the target inflation rate.Experian, a credit data firm based in the UK, saw a 1.4% drop in its shares to 3,588p, marking its lowest point since May. The company reported a 7% increase in organic revenues for the first quarter and maintained its growth expectations for the full year. Additionally, COO Craig Boundy will be stepping down from his position and as a director on August 20 to take on the role of CEO at McAfee Corp. The market cap of Experian decreased by 496.6 million pence due to the losses in this session. The company’s shares performed worse than London’s index, which fell by 0.5%. Prior to this session, the shares had seen a 13.7% increase year-to-date.Ocado, a UK-based online grocer and technology group, saw a significant increase in its stock price on the FTSE midcap index following a strong first half of the year and an upgraded outlook. The company’s shares rose by 17.5% to 400p, making it the top gainer on the London midcap index. Ocado also reported a smaller first-half loss before tax of 153.9 million pounds, compared to 289.5 million pounds in the previous year. The company raised its forecast for the core profit margin of its Technology Solutions division for fiscal year 2024 to the mid-teens, up from previous expectations of over 10%. Additionally, Ocado expects underlying cash flow to improve by 150 million pounds in 2024. The company also saw a 12.6% increase in first half group revenue to 1.54 billion pounds. Despite these positive developments, Ocado’s stock has fallen by approximately 46% year to date.Wise Plc, a UK-based company, saw a 4% increase in its stock price to 777.5p, reaching its highest level since June 12. The British money transfer firm reported a 22% growth in Q1 underlying income and maintained its full-year underlying income growth target at 15-20%. Additionally, the company recorded a 26% growth in active customers and an 18% increase in volumes. Prior to this increase, the stock had experienced a decrease of approximately 15% since the beginning of the year.
FTSE Bias: Bullish Above Bearish below 8225