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On Monday, the UK's top stock index remained close to a two-week peak, however, early gains have been ceded as the FTSE returns to hover just below the flatline to start the week -0.11%, with energy stocks increasing due to rising tensions in the Middle East. However, there was still a sense of carefulness as investors awaited decisions from major central banks and upcoming earnings reports this week. The presence of U.S. forces in Jordan has increased concerns about potential supply disruptions in the Middle East, particularly as Houthi rebels have intensified their attacks on ships in the Red Sea.

The blue chip stock index experienced its first weekly increase of the year on Friday, supported by positive earnings reports and optimism about potential stimulus measures for China's economy. Investors are anticipating upcoming decisions from the U.S. Federal Reserve and the Bank of England, with expectations that interest rates will remain unchanged, but with a close eye on any indications of possible rate adjustments. Ryanair's shares declined by 3.1% after the company adjusted its profit outlook for the fiscal year ending in March due to a decrease in online travel agents selling its flights in December, leading to lower fares to fill seats. Other airlines such as IAG (owner of British Airways), Wizz Air, and EasyJet also saw declines in early trading.

Kingfisher, a European home improvement retailer, saw its shares drop by 2.5%, making it one of the top percentage losers on the FTSE 100 index. RBC downgraded its rating for the company from "Outperform" to "Sector perform," citing a subdued outlook. The brokerage does not anticipate significant profit growth for Kingfisher until 2025 due to subdued housing activity and like-for-like sales. Despite a 3% gain in 2023, the company's outlook remains cautious. Schroders, a UK fund manager, saw its shares drop by 4.2%, making it the top loser on London's FTSE 100 index. Brokerage firm Jefferies reduced the price target to 430p and expressed doubts that the company's full-year results would justify its price/earnings rating premium to the sector. Jefferies stated that a more significant shift in client risk appetite towards equity and alternatives is needed for a more compelling outlook for the shares. BNP Paribas also downgraded the rating to "underperform" from "neutral." The current average rating of 15 analysts on the stock is "hold," with a median price target of 440p according to LSEG data. As of the last close, Schroders' shares are down approximately 13% in the last 12 months.

FTSE Bias: Bullish Above Bearish below 7600

• Below 7500 opens 7440
• Primary support at 7382
• Primary objective 7827
• 20 Day VWAP bullish 5 Day VWAP bullish

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