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On Tuesday, British stocks saw an initial increase as indications of a weakening employment market in the UK emerged, although a decline in industrial metal miners prompted a sharp reversal lower throughout the day with the blue chip trading down over 1.3%. The pound weakened against the U.S. dollar, reaching $1.2721. Data revealed that the unemployment rate in Britain for April increased to 4.4% from 4.3%, contrary to expectations of no change according to a Reuters poll. Wages, excluding bonuses and closely monitored by the Bank of England (BoE) for potential interest rate cuts, grew by 6% in April, slightly lower than the anticipated 6.1% growth.

Homebuilders saw a 1% increase, with the anticipation of rate cuts leading to lower mortgage rates and an increase in demand for homes. Traders are currently predicting a 60% likelihood of the BoE reducing rates in September. The central bank will convene in less than two weeks to make a decision on borrowing costs. The homebuilders Persimmon, Barratt, and Taylor Wimpey on the FTSE 100 saw gains of 1.2% to 1.5%. In the midcap sector, Crest Nicholson was the top percentage gainer, with a rise of 2.7% in the sector index.

In terms of individual stocks, Rio Tinto experienced an initial decrease after announcing its acquisition of Mitsubishi Corp's 11.65% stake in Boyne Smelters (BSL) for an undisclosed amount. The industrial metal mining sector also saw a 1.9% decline. Copper miners shares decline as red metal prices in London hit a seven-week low. Three-month copper on the London Metal Exchange falls 2% to $9,706 per metric ton due to a weaker yuan and rising inventories. Mining giants Rio Tinto and BHP both declined by 2.7%.

On the positive side of the generally weak ledger UK-based pharmaceutical company Hikma sees an increase in its stock value as Citi raises its target price. The company's shares are up by 3% making it the top percentage gainer on the FTSE 100 index. Citigroup has raised the target price to 2845p from 2770p, citing highly encouraging data from research firm IQVIA on Hikma. The stock has seen an 11% increase year-to-date, including session moves.

Oxford Instruments, a UK-based nanotechnology tools maker, saw its shares jump 9.5%, the highest level in about a year. The company has a strong outlook, expecting organic growth of 5-8% compound annual growth rate and adjusted operating margin improvement of 20%+ in the medium term. JPMorgan raised its price target to 2,750p from 2,400p and maintained an "overweight" rating. The company also reported a 1.6% increase in FY adjusted pre-tax profit to 83.3 million pounds. Additionally, it announced an agreement to acquire FemtoTools AG, a Zurich-based developer of nanoindentation instruments, for an initial cash consideration of 17 million Swiss franc. The company's shares are up 7.2% year-to-date.

FTSE Bias: Bullish Above Bearish below 8240

• Above 8370 opens 8470
• Primary support 8000
• Primary objective 8023
• 5 Day VWAP bullish
• 20 Day VWAP bearish

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