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The FTSE 100 continues to struggle under the weight of a pullback in commodity prices, energy giants BP & Shell opened the day in the red shedding 1.5% and 1.3% respectively, coupled with a continued retreat in the industrial mining sector being led by Fresnillo -2.2%+ with Anglo American-1.2%+ and Endeavour Mining -1.04% holding the trio of bottom spots in the index, the pullback in the commodity sector continues to be driven by global growth concerns suggesting that a decline in fuel demand will outstrip the OPEC+ supply cuts. For the base metals sector, investors continue to pull back exposure as issues around the China recovery narrative continue to hamper metals performance, given China’s stature as the largest global consumer.

Dowlais Group followed through from Friday's stellar performance racking up a further 5% of gains, as the demerger from Melrose Industries is completed and the business attracts new investment from US-based Capital Group Inc helping to drive forward the development of the newly independent UK auto supplier.

As Monday’s session draws to a close the FTSE is once again flatlining as action on Wall Street remains less than convincing ahead of a big week of tech earnings with 40% of the SP00 market cap reporting this week investors have turned cautious. Also noteworthy this week UK investors will see earnings from banking heavyweights Natwest, Barclays and Standard Chartered all coming in the aftermath of the Credit Suisse meltdown, investors will be parsing reports for any additional signs of contagion risk.
 

FTSE Bias: Intraday Bullish Above Bearish below 7875

• Primary support  is 7635
• Primary objective 8030
• Below 7750 opens 7590
• 20 Day VWAP bullish, 5 Day VWAP bullish

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