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On Friday, the UK's FTSE 100 remained relatively stable as investors monitored the global negative sentiment, with persistent U.S. inflation dampening hopes for interest rate reductions. Meanwhile, Vodafone saw an increase in its shares after selling its Italian division. The FTSE 100, which is heavily reliant on exports, maintained its position around the flatline up 0.08% on the day.

The market was influenced by the sentiment from Wall Street and Asian equities, as higher-than-anticipated consumer and producer inflation data reduced investor expectations for an early interest rate cut from the Federal Reserve. This could potentially impact the decisions of other central banks. Medical equipment and services, beverages, and personal care stocks experienced declines, with decreases ranging from 0.7% to 1%. Investors will now focus on the upcoming interest rate decision from the Bank of England, where it is widely expected to remain unchanged. However, it is unlikely to provide clear indications of when it might implement its first rate cut.

Vodafone shares surged by 6%, positioning them among the top gainers on London's blue-chip index, following the announcement of a deal to sell its Italian business to Swisscom. Swisscom will acquire Vodafone Italia for 8 billion euros ($8.70 billion) and merge it with its Italian subsidiary, Fastweb. The transaction, valued entirely in cash and fully debt-financed, marks a significant move for both companies. Vodafone plans to return 4 billion euros of capital to shareholders as a result of the sale of its Italian operation to Swisscom, as well as the sale of its Spanish unit agreed upon last year. This capital return will be facilitated through share buybacks, with a new leverage range of 2.25x – 2.75x. Additionally, the company announced that its dividend will be rebased to 4.5 euro cents a share from the financial year 2025 onwards. As of the last close, Vodafone shares had experienced a downturn of approximately 30% in the past 12 months. However, the deal with Swisscom and the subsequent capital return plan have sparked a positive market response, driving the share price higher.

On the negative side of the ledger Reckitt Benckiser, the maker of Dettol, is approaching a near ten-year low as its stock falls by 11.3% . This drop is the steepest since February 28. The company's unit, Mead Johnson, has been ordered to pay $60 million to the mother of a premature baby who died after being fed the company's Enfamil baby formula. Mead Johnson plans to appeal the decision. There are over 400 lawsuits pending against Mead Johnson and Abbott, the maker of Similac, in federal and state courts. Shareholders are concerned about potential additional compensation payouts and are reacting accordingly, despite Mead Johnson's plans to appeal. The stock has already lost 5.8% in 2023.

FTSE Bias: Bullish Above Bearish below 7700

• Below 7590 opens 7550
• Primary support 7635
• Primary objective 7860
• 5 Day VWAP bullish
• 20 Day VWAP bullish

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