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As hopes of quicker interest rate decreases were bolstered by indications of reducing inflation, U.K. stocks slightly increased on Thursday. On Thursday, the GBP hit a two-week high. Although the ECB lowered interest rates by 25 basis points as anticipated, the statement said that recent negative surprises in economic activity indices had an impact on the inflation forecast. Incoming data indicates activity is less than anticipated, according to ECB President Christine Lagarde. The language suggests that the ECB is shifting its emphasis to economic expansion, which may lead to a more aggressive round of rate cuts. After rising 1% the day before, the FTSE 100 benchmark increased 17 points, or 0.2%, to 8,346. Mining stocks were mixed, with Antofagasta down more than 2% as investors were not impressed by yet another eagerly awaited policy update from China's housing ministry. On an ex-dividend basis, Smiths Group and Persimmon both saw a 2% decrease.

In single stock stories UK-based Mondi was the biggest percentage fall on the FTSE 100 index, which stayed mostly unchanged, as its third-quarter profit declined sequentially, causing its share price to drop 6.8% to 1,295p. The stock of the corporation fell to its lowest level since October 2023. Reduced demand and more scheduled maintenance were blamed for the 36% quarter-over-quarter drop in core earnings. In addition, the business noted that, in comparison to the preceding three months, pulp and paper selling prices in the uncoated fine paper segment had decreased. This year, Mondi's stock has fallen over sixteen percent, behind the FTSE 100 index's 7.6 percent increase.

Rentokil Initial, a British pest control company, saw its shares rise as much as 10.1% to 375.4 pence, making it the top gainer on the FTSE 100 index. The company is expanding its initiatives to increase organic growth in North America. Rentokil Initial is reviewing its Terminix integration program early in the new year to assess various elements, slightly delaying the timing of synergy delivery by approximately 2-3 months. The company acquired Terminix for $6.7 billion in 2021 but has struggled to integrate the two companies. Rentokil Initial reported a 3.6% increase in group revenue for the third quarter with organic revenue growth of 2.6% and maintained its full-year revenue and margin outlook. However, the stock is down 22.6% year-to-date as of the last close.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8225

• Primary support 8100
• Primary objective 8600
• Daily VWAP Bullish
• Weekly VWAP Bullish

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