Image Source: Pexels

The FTSE kicked off a holiday-shortened trading week in the green, gains were led by banking heavyweight HSBC +3.8%, the upside was supported by a robust earnings report that demonstrated a quarterly profit that had tripled quarter over quarter, exceeding analysts' expectations, the rise in income was driven by the elevated rates environment which led the bank to issue a quarterly dividend for the first time since 2019. Home Builder Persimmon has pipped HSBC to the top spot on the day as a modest improvement in housing market data led investors to pile in with the stock gaining over 5%.

BP also announced profits of $5 billion for the first quarter of 2023 which represents an improvement on last quarters record performance, the business continues to see outperformance from its oil and gas trading units, however, BP also announced a paring in its share buyback program, reducing the proposed share acquisition schedule to $1.75 billion for the quarter ahead, this led to disappointment amongst investors leading to the stock sliding -8.5% on the session with Shell shedding -4.2% on sector related performance concerns as crude oil prices continue to weaken. 

The standout underperformer on the session was educational publisher Pearson Plc with shares slashed by -15%+, the losses came as US online education provider Cheg saw a 40%+ decline in shares on reports that AI tool ChatGPT may eat into the company's revenues as students take advantage of the free alternative, this has led to a sharply negative revaluation of Pearson's prospects.

The weight from losses in BP and Shell weighed on the broader index and Pearsons double-digit drop did little to help the general mood as a post-holiday hangover has developed through the day, Wall Street is also witnessing a fresh round of selling which is souring risk sentiment further as the FTSE limps into the close with losses of just over 1%.

FTSE Bias: Intraday Bullish Above Bearish below 7750

• Primary supportis 7635
• Primary objective 8030
• Below 7750 opens 7706
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

(Click on image to enlarge)

More By This Author:

Daily Market Outlook - Tuesday, May 2
Daily Market Outlook - Friday, April 28
Daily Market Outlook - Thursday, April 27