FTSE Finding Its Feet After Tuesday’s Washout

Cutout paper illustration representing scheme and Stocks inscription

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On Wednesday, the UK's FTSE 100 remained relatively unchanged posting a modest 0.45% gain as market sentiment was influenced by a smaller-than-anticipated deceleration in Britain's inflation rate. However, the performance was tempered by the resilience in industrial metal miners, which helped to limit broader market losses. Investors continued to grapple with mixed sentiments following the release of data showing Britain's inflation rate easing to 3.2% in March, slightly surpassing economists' forecasts of 3.1%, as per a Reuters poll. Nonetheless, the data reinforced the ongoing trend of cooling inflation, contributing to market uncertainty.

Mining stocks led the FTSE 100 risers list, with Rio Tinto and Anglo American performing well. Rio Tinto maintained its annual production guidance despite a decline in first-quarter iron ore shipments and production. Meanwhile, Anglo reported an improvement in rough diamond sales at its De Beers division. Antofagasta also saw an increase after reaffirming its full-year output targets despite an 11% drop in first-quarter copper production. Glencore and Fresnillo were also doing well.

Shares of International Distributions Services (IDS), the owner of UK's Royal Mail, surged by as much as 26% following reports of a potential bid. This marks the largest one-day percentage gain since September 2020. Czech billionaire Daniel Kretinsky, who is IDS's largest shareholder, has reportedly been exploring the possibility of making a bid for the company, according to two individuals familiar with the matter cited by Reuters. Kretinsky has been informally working with advisors in recent months to assess the feasibility of taking over IDS. Despite this surge, IDS's stock had experienced a decline of 7.5% over the past year as of the last close.

Entain, the owner of Ladbrokes, saw its shares climb by 1.4%, making it one of the top gainers on the FTSE 100 index. The uptick follows better-than-expected results for the first quarter, particularly in online gaming revenue, driven by an increase in customer numbers. Entain expressed confidence in its ability to achieve organic growth into 2025 and beyond. The company reported a 6% growth in group net gaming revenue (NGR). Analysts at Jefferies anticipate a turnaround in NGR momentum later in 2024, attributing it to a streamlined focus on core markets and a positive return to growth in Brazil. Despite this positive performance, Entain's stock had experienced a decline of approximately 37.9% over the past year as of the last close.

FTSE Bias: Bullish Above Bearish below 7900

  • Below 7770 opens 7700
  • Primary support 7775
  • Primary objective 8059
  • 5 Day VWAP bearish
  • 20 Day VWAP bullish

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