Image Source: Unsplash

The UK's FTSE 100 index is trading in the red, UK homebuilders suffered further losses as the Bank of England (BoE) surprised the market by raising interest rates by a larger-than-anticipated half a percentage point to 5%. The British home builder index declined by as much as 2.7%, hitting its lowest level in nearly seven months. This came after a 3.2% drop on Wednesday. The BoE's decision to raise rates was driven by "significant" news indicating that British inflation would persist for a longer period. Inflation for May came in higher than expected at 8.7%, adding to concerns. As a result, FTSE 100 homebuilders, including Persimmon, Barratt, and Taylor Wimpey, saw their stocks decline by more than 2.5% each. The decline in homebuilder stocks had already begun prior to the BoE's interest rate decision, reflecting market expectations and concerns surrounding the potential impact on the housing market.Airtel Africa finds itself at the bottom of the blue-chip list, experiencing a 6% decline in its share price. The drop comes as reports circulate that the company is expected to face a significant impact on its revenues, amounting to US$1.3 billion, and a profit loss of US$740 million due to the devaluation of the Nigerian naira. Nigeria serves as Airtel Africa's largest market in Africa.

On the positive side of the ledger Ocado Group has once again topped the FTSE leaderboard amid reports suggesting it could be a potential takeover target for Amazon. Following a recent decline in share price to a six-year low, market rumors of bid interest have started to circulate, according to The Times. The report highlighted that Ocado has seen a boost this week due to speculation of interest from multiple American suitors, including tech giants like Amazon.As a result of the takeover rumors, shares of the online grocery technology company surged by 17% to reach 504p this morning. This increase brings the share price back to levels seen in early May, after having fallen to a low below 345p in early June.

FTSE Bias: Intraday Bullish Above Bearish below 7510

• Below 7510 opens 7435
• Primary resistance is 7660
• Primary objective 7430
• 20 Day VWAP bearish, 5 Day VWAP bearish

(Click on image to enlarge)

More By This Author: