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The FTSE is continuing to struggle for upside traction for a second session even as US inflation came in marginally below the 5% headline level at 4.9%, US markets responded positively but the positivity failed to carry over to the UK market ahead of tomorrow’s Bank of England meeting, Investors remain cautious.  

On a positive note, Melrose Industries sits at the top of the index positing gains in excess of 3.8%, Melrose delivered an upbeat earnings outlook which saw investors reward the shares lifting the stock to print three-year highs, the company confirmed its intention to remain a stand-alone aerospace play post the recent spin-off of its automotive interests also confirming fiscal year revenue inline with forecasts, the move in Melrose has given a sector lift to Rolls Royce trading up 2.7%. Compass Group were also in the green trading up as highs as 4% on the session before sliding a little later in the day to hold 1.2% gains, the company announced upbeat earnings and raised fiscal year 2023 revenue, profits, and margin, the business bumper profits have been supported by the post-pandemic return to work trend, additionally, the company confirmed a share buy program of £750 million above analysts expectations.

On the negative side of the ledger Pearson sits at the bottom of the table on the day trading down over 2.8% on the session, the losses come in spite of the business announcing the appointment of Rightmove CFO Alison Dolan as a Non-Exec along with New York Times Chief Product Officer Alex Hardiman as a Non-Exec. According to the Times hedge funds are shorting online retailing stocks as they are betting that pandemic gains will be reversed as shopping habits normalise, the reporting notes that Ocado is a specific target, this has led to a dip in the shares giving up just over 2.8% on the day.

FTSE Bias: Intraday Bullish Above Bearish below 7700

• Below 7700 opens 7660
• Primary supportis 7635
• Primary objective 8030
• 20 Day VWAP bearish, 5 Day VWAP bearish

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(Click on image to enlarge)

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