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On Monday, the FTSE 100 in London showed little change as increases in travel and leisure sectors were balanced out by declines in defence stocks. Investors are anticipating further corporate announcements and insights from Bank of England officials regarding the UK economy. The FTSE 100, which had recently reached record highs in 11 of the last 13 sessions, remained steady as the BoE adopted a cautious approach and a depreciating pound bolstered the market's overall performance.

BAE Systems experienced a 2.8% decline following BofA GlobalResearch's decision to downgrade its rating from "buy" to "neutral". This had a negative impact on the aerospace and defence sector, causing it to be one of the worst performing sectors.

The focus for this week will be on labour market data scheduled for release on Tuesday, as well as comments from BoE's chief economist Huw Pill and external member of the monetary policy panel Megan Greene, which may provide insight into the timing of policy easing. Additionally, investors will be analysing U.S. inflation data to assess the Federal Reserve's interest-rate trajectory. Currently, money markets have priced in two rate cuts by 2024, with the easing cycle expected to commence in August.

Diploma Plc saw a significant 5.3% increase, reaching a record high and ranking among the top gainers of the FTSE 100 due to an optimistic forecast from the technical products and services provider.

On the negative side of the ledger, Shares of Rio Tinto listed in London dropped by 1.4% to 5,530 pence after a train carrying iron ore derailed in Western Australia. The stock is among the top percentage losers on London's FTSE 100 index. The mining company reported that a driverless train and wagons carrying iron ore derailed at its Western Australian iron ore operations. According to statements from the company and Australia's rail safety watchdog, around 22 wagons carrying iron ore and three locomotives were affected. Each wagon typically carries about 116 tonnes of iron ore, potentially impacting as much as 2,550 tonnes of iron ore, according to Reuters calculations. Rio Tinto stated that it is investigating the incident. The stock is down 4.1% year-to-date as of the last close.

FTSE Bias: Bullish Above Bearish below 8300

• Below 8300 opens 8050
• Primary support 8000
• Primary objective 8537
• 5 Day VWAP bullish
• 20 Day VWAP bullish

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