FTSE A Soggy Start The The Holiday Shortened Week

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On Tuesday, the FTSE 100 decreased as investors anticipated additional economic data and remarks from Bank of England Governor Andrew Bailey later in the week. The main FTSE 100 index was down 1.1%, marking the fifth consecutive session of losses.

The share prices of British water utilities Pennon, United Utilities, and Severn Trent have dropped by 3% to 3.7% following a report that the regulator Ofwat may reject most suppliers' requests for significant price increases. According to The Guardian, some suppliers may only receive half of the requested price hike. Ofwat's decision, known as the draft determination, has been formally postponed until 11 July due to the general election. The regulator, which oversees water suppliers in England and Wales, has declined to comment on the report. As a result of this news, Pennon has experienced a year-to-date decrease of 21.9%, while Severn Trent and United Utilities have each seen losses of around 7%.

Even as the British Retail Consortium reported that prices in British shops increased at the slowest rate in two and a half years, Ocado, an online supermarket, experienced the highest increase on the FTSE100, jumping 6.8% after JP Morgan raised the target price for the stock. Legal & General Group also saw a 1.3% rise following Sky News' report that homebuilder Persimmon was considering a 1-billion-pound ($1.28 billion) bid for the insurer's Cala unit. However, Persimmon itself experienced a 2.1% decrease and was one of the top losers on the FTSE 100.

Flutter Entertainment and Entain PLC saw a decline in their stock prices after Illinois passed a bill to implement a new tax on sports betting revenue. The tax is progressive, starting at 20% for adjusted gross receipts up to $30 million and reaching 40% for AGR above $200 million. Flutter, which is in the process of removing its London primary listing and FTSE 100 status, experienced the largest drop of 6.3%. Ladbrokes, a 50% owner of BetMGM, also fell by 2.5%. 

FTSE Bias: Bullish Above Bearish below 8345

  • Above 8350 opens 8395
  • Primary support 8000
  • Primary objective 8112
  • 5 Day VWAP bearish
  • 20 Day VWAP bullish

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