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UK stock indexes rose slightly on Tuesday +0.12% following a strong close on Wall Street the previous night. Investors were also reassured by positive earnings reports and indications of decreasing domestic price pressures. The S&P 500 in New York achieved a new all-time high on Monday, anticipating a week filled with major company earnings, economic data, and the Federal Reserve's monetary policy meeting. The British Retail Consortium reported that prices in UK shops increased at the slowest rate since May 2022, indicating a reduction in inflation pressures leading up to the Bank of England's upcoming policy decision.

WPP saw a 6.1% increase, making it the top gainer on the FTSE 100, THE British advertising group, has seen a 6% increase in its shares, reaching 828.6p, as it expects its 2023 sales and margins to meet forecasts. The company anticipates a 0.9% rise in like-for-like revenue, less pass-through costs, surpassing the previously forecasted range of 0.5% to 1.0% growth. Additionally, WPP is aiming for a headline operating margin of 14.8% for 2023, or 15% on a constant currency basis, which is at the upper end of its 14.8-15% guidance. Looking ahead to 2024, the company foresees a flat to 1% increase in like-for-like revenue, along with a small 20-40 basis points rise in operating margins. As of the last close, the company's stock is up approximately 9% year-to-date.

On the negative side of the ledger, Diageo's, a spirits maker, experiences a drop in sales in Latin America, causing its shares to fall by 3.25% to 2,747.5p, making it the top percentage loser on London's blue-chip index. The company misses first-half sales estimates due to a sharp decline in demand in Latin America, with sales in the region slumping by 23%. Organic operating profit also sees a 5.4% decrease, worse than the 4.7% decline forecasted by analysts. Additionally, there is a surprise 0.6% fall in organic net sales, while analysts had anticipated it to remain flat. Analysts express concern about the profit outlook for the second half, as markets are now predicting a small decline in operating profit. The stock has already fallen by approximately 22% in 2023.

FTSE Bias: Bullish Above Bearish below 7620

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

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