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On Friday, London stocks experienced a slight decline before catching a late bid, however, the stage is still set for a weekly loss following a week characterised by a risk-off sentiment in the market. The FTSE 100 index inched higher by 0.08% on the day, and the broader context of the week had the index on track for their worst weekly losses in seven weeks. One of the primary factors contributing to the risk-off sentiment was the surge in government bond yields, driven by expectations of higher interest rates. This development had a notable impact on equity markets, leading to increased market volatility and downward pressure on stock prices. 

Leading the blue chip index lower is Rentokil, a company engaged in pest control and hygiene services, and appears to have faced negative sentiment in the market. This unfavourable sentiment followed an initiation report from Societe Generale, which rated Rentokil as a "sell." Initiation reports by financial institutions like Societe Generale provide their assessments and recommendations for specific companies' stocks. In this case, the initiation report from Societe Generale expressed a bearish outlook on Rentokil's stock, suggesting that investors should consider selling their holdings in the company.

ON the positive side of the ledger Aviva, one of the UK's largest insurers, experienced a significant increase in its stock price, with shares rising as much as 7.6%. This surge made Aviva the top percentage gainer on the FTSE 100 index. The notable uptick in Aviva's stock price was attributed to takeover chatter, as reported by Britain's Times newspaper. The newspaper mentioned the possibility of a foreign buyer considering a takeover of Aviva, sparking investor interest and driving up the stock price. It's important to note that Aviva did not immediately respond to requests for comment regarding the takeover rumours. Nevertheless, the speculation in the market led to a surge in Aviva's share price, reaching its highest level since May 24. For context, Aviva's stock had experienced a decline of approximately 6% year-to-date before the surge, indicating that the takeover chatter had a significant impact on investor sentiment and the stock's performance on that day. Such rumours can lead to increased volatility and trading activity as investors react to the potential implications of a takeover in the insurance industry.

FTSE Bias: Bullish Above Bearish below 7455

• Below 7370 opens 7320
• Primary support is 7370
• Primary objective 7858
• 20 Day VWAP bullish, 5 Day VWAP bearish

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