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Aerospace and defence sectors led London stocks' poor start to the week. However, investor optimism about a possible September rate cut in the US helped to contain losses, as the market rallied to end the week in positive territory. Monday saw a 0.75% increase in the blue-chip FTSE 100 index, which had recorded its best week since May the previous session.

Aerospace and defence stocks fell 1.3%, reflecting declines in European defence equities after news broke that the German federal government will not approve additional requests for military help for Ukraine because of budget restrictions. Bae Systems' stock dropped 2%, while Chemring and Rolls-Royce also had stock declines of more than 1%.

Conversely, industrial and precious metal miners saw a 0.7% increase each as gold prices hovered around record highs and copper rose as worries about the US recession and Chinese demand subsided. GOL/MET/L Following the announcement by property website Rightmove that British estate agents had reported increased buyer interest following the Bank of England's interest rate decrease, real estate and real estate investment trusts saw a little increase in value.

Barratt's shares rise 1.1% as the competition regulator's condition for BDEV's acquisition of Redrow is waived to satisfy a legal completion this week. Redrow's shares increase. The companies state they will remain separate until the Competition and Markets Authority (CMA) approves the deal. The CMA had earlier raised concerns about the 2.52 billion pound transaction. BDEV expects the CMA to agree to the proposed undertakings. BDEV is down more than 3% year-to-date, while RDW is up 27%.

Plus500, an online trading platform, has reached a record high in its share price, with the company forecasting annual revenue and core profit to exceed market expectations. The company has also announced shareholder returns of $185.5 million, including a $110 million share buyback plan and $75.5 million in dividends. Additionally, the company saw a 13% increase in new customers to 56,759 in the first half of the year, and its group revenue and core profit rose by 8% and 6% respectively during the same period. The PLUSP stock has risen 61.6% year-to-date.

After a sell-off in global markets earlier this month, investors were reassured by data last week that showed inflation was slowing and allayed fears of a recession. This renewed optimism about a possible rate cut in the United States. When U.S. Federal Reserve Chair Jerome Powell speaks later this week at the Jackson Hole gathering, all eyes will be on his commentary. In an otherwise light data week, the UK and the US are expected to release their monthly purchasing managers index readings later this week, along with the minutes of the Fed's most recent policy meeting.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8225

• Primary resistance 8400
• Primary objective 8600
• Daily VWAP Bullish
• Weekly VWAP Bullish

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