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On Thursday, the FTSE 100 experienced a reversal of its early gains to turn red on the session and is currently trading below the pivotal 7600 level nursing losses of nearly 1% on the day. This occurred due to the impact of higher inflation in the United States, which led to a decrease in expectations for imminent interest rate cuts from the Federal Reserve (Fed). This development dampened hopes among investors who were anticipating a more accommodative monetary policy from the Fed.

On the positive side of the ledger Whitbread, the owner of Premier Inn, saw a 2.3% increase in its shares,  making it the top gainer on the FTSE 100 index. The company reported an 11% rise in total Q3 sales due to strong demand during the festive season at its restaurants and hotels. Q4 also showed strong trading, with UK accommodation sales 12% ahead of FY23 and revenue per available room up 10% on the year. Analysts believe that while future comparisons will be tougher, the company's 3-4% cost growth view for next year should not be a cause for concern and should allow flexibility in pricing. Whitbread also maintains its full-year revenue and profit outlook. The stock has seen a 25% increase in the last 12 months.

On the negative side of the ledger Marks & Spencer shares have dropped by over 3.5%, making it one the top percentage losers on the FTSE 100. Traders attribute this to an uncertain outlook prompting profit-taking, despite a strong performance and better-than-expected Christmas trading. The company saw an 8.1% increase in like-for-like sales over Christmas. However, there is uncertainty about whether the favourable market conditions, resilient consumer demand, and exit of competitors will continue. CEO Stuart Machin remains optimistic but acknowledges the near-term challenges. The company's shares are down 2% year-to-date, including today's movements. WPP, the world's largest advertising group, saw its shares drop by 2.8%, confirming its position as one of the top losers on the FTSE 100 index. UBS downgraded the stock from "buy" to "sell" due to weak cash flow levels as tech clients' ad spend is expected to remain low. Reuters reported that WPP is considering selling its 40% stake in Kantar, which could be valued at up to $8 billion including debt. UBS also lowered WPP's price target to 700p from 1,200p and expects organic growth in the sector to be below consensus in both 2024 and the medium term. Analysts' ratings for the stock vary, with seven having a "buy" or higher rating, seven with a "hold" rating, and four rating it at "sell" or lower. The median price target is 875p according to LSEG data. The stock has declined by 13.8% in the last 12 months. However, both M&S and WPP were pipped to the bottom spot of the blue chip index by Barclays whose share witnessed over a 4.5% decline.

FTSE Bias: Bullish Above Bearish below 7600

• Below 7550 opens 7480
• Primary support at 7382
• Primary objective 7827
• 20 Day VWAP bearish 5 Day VWAP bearish

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