FTSE Follows US Markets Lower Ahead Of Key Data Updates

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UK stocks started the day with a decline on Tuesday as investors prepared for important economic data from the U.S. and UK to gain insight into the trajectory of global interest rate cuts. However, the market saw limited losses due to gains in metal mining companies. The FTSE 100, which is heavily influenced by commodities, dropped by 0.2% heading into the close of the session. Industrial metal miners in the heavyweight category saw a 1% increase as the prices of metals continued to rise on Tuesday, reflecting the anticipation of a recovery in global manufacturing activities. Investors will closely monitor important economic events this week, such as U.S. inflation, the European Central Bank's policy meeting, and Britain's GDP figures, to gain new perspectives on the global interest rate cut outlook.

BP's shares rose by 1.3% to 516.4p, the highest since October 30, 2023, following the company's announcement of an increased quarterly forecast for upstream energy production. The oil giant anticipates higher production of both oil and gas, as well as low-carbon energy in the first quarter compared to the previous quarter. Additionally, BP expects strong performance in oil and gas trading, as well as a boost of $100 million to $200 million from improved oil refining margins. However, the company foresees a negative impact of $200 million to $400 million on its gas and low-carbon energy segment due to lower realised prices. Despite this positive news, the stock has experienced a 4% decrease in the last 12 months leading up to the last close.

On the negative side of the ledger BAE Systems faced pressure sitting at the bottom of the blue chip index on the day (-4.71%) after Goldman Sachs stated in a research report on European defence stocks that it anticipates a greater potential for the sector's valuations to decline rather than increase by 2025.

FTSE Bias: Bullish Above Bearish below 7900

  • Below 7890 opens 7850
  • Primary support 7775
  • Primary objective 8059
  • 5 Day VWAP bullish
  • 20 Day VWAP bullish

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