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On Thursday Britain's FTSE 100 stock index initially experienced losses but later rebounded to trade in the green by 0.24%. The rebound was supported by gains in retailers and rate-sensitive real estate and homebuilder stocks, which helped mitigate the index's losses. Prior to the Bank of England's interest rate decision, the FTSE 100 had traded 0.7% lower, reflecting uncertainty in the market as investors awaited the central bank's announcement.

UK retailers saw a significant boost in their stock prices after the Bank of England (BoE) decided to halt its series of interest rate hikes amid a slowdown in the British economy. The FTSE retailers' index surged by 3% in response to this decision. The BoE's Monetary Policy Committee made a narrow decision, with a 5-4 vote to keep the Bank Rate steady at 5.25%, signaling a pause in the rate hike cycle. Several FTSE 100 members, which had already experienced gains before the BoE announcement, saw their stock prices rise even further following the decision. Companies like JD Sports Fashion now sitting at the top of the blue chip index, Next Plc, and Marks and Spencer experienced gains ranging from 1.7% to 8%, contributing to the positive performance of the FTSE retailers' index. The FTSE retailers' index has demonstrated strong performance throughout the year, with a year-to-date gain of 24.4%. The BoE's decision to pause interest rate hikes appears to have provided further support to the retail sector in the UK.

On the negative side of the ledger, UK's Ocado Group saw a notable decline in its stock price following a downgrade by Exane BNP. Shares of Ocado fell by as much as 7.1% making it the top percentage loser on London's blue-chip index. Exane BNP downgraded the British online supermarket's rating from "neutral" to "underperform," citing concerns about subdued growth in its retail business. The downgrade comes after Ocado's stock had doubled in value since Exane moved its rating to "neutral" from "underperform" back in June. At that time, Exane believed that the risk-reward profile had become more balanced. In a note, Exane stated, "It seems now to be out of kilter again." Despite the downgrade, Exane maintained its target price for Ocado at 390p.

Ocado's stock had experienced significant gains earlier in the year, with a nearly 24% increase in its value year-to-date. However, the concerns raised by Exane BNP have led to a decline in investor confidence, resulting in the stock's drop following the downgrade.

FTSE Bias: Bullish Above Bearish below 7640

• Above 7725 opens 7800
• Primary resistance  is 7625
• Primary objective 7858
• 20 Day VWAP bullish, 5 Day VWAP bullish

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