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U.K. stocks are essentially flat in cautious trading on Tuesday as investors eagerly await the U.S. presidential election outcome and interest-rate decisions from the Bank of England and the Federal Reserve later this week. The benchmark FTSE 100 is trading -0.05% after closing marginally higher on Monday. The S&P Global UK Services Purchasing Managers Index declined to 52 in the previous month from 52.4 in September, indicating a slight slowdown in the growth of Britain's services sector.

UK and European stocks may react positively to a Harris victory and probably negatively to a Trump one. Analysts believe Trump's policies on immigration, tax cuts, and tariffs would put upward pressure on inflation and drive up bond yields and the dollar, while Harris is seen as the continuity candidate. While the U.S. elections are hogging the limelight, UK investors are also looking ahead to the Bank of England's meeting on Thursday, where there is anticipation of a potential 25 basis point rate cut.

In single stock stories Shares of AstraZeneca fall as much as 5.9% to a more than seven-month low, making it the second-biggest percentage loser on the FTSE 100 index. Dozens of senior executives at AstraZeneca China are expected to be implicated in the largest insurance fraud case in the nation's pharmaceutical sector in years, according to reports from financial media firm Yicai. AstraZeneca had previously stated that Leon Wang, the president of AstraZeneca China, was under probe and was cooperating with Chinese authorities. The stock is currently down 5.5%, pushing its year-to-date losses to 1.6%.

Schroders, a British fund manager, saw its shares drop as much as 12.2%, the lowest level since March 2020. The stock was the top loser on the FTSE 100 index. The company reported net outflows of client funds of 2.3 billion pounds ($2.98 billion) for the third quarter due to continued market volatility in China, which impacted demand for its joint venture funds. Schroders also signalled it was bracing for a tough fourth quarter, citing a previously notified loss of around 10 billion pounds of funds from institutional clients, including Lloyds' Scottish Widows. The stock is down 15.4% year-to-date.

Vodafone shares rise up to 1.1% to 73p, among top percentage gainers on FTSE 100 which is flat. The Competition and Markets Authority, in a provisional ruling said the $19 billion merger between Vodafone and Hutchison's Three UK is likely to be given the go-ahead as investment commitments outweigh concerns over competition. The CMA said the deal could proceed if the remedies it recommends are implemented, including a legally binding commitment to invest in the roll-out of the 5G network plus short-term customer protections. Hutchison is up 0.4% at HK$41.3. As of last close, Vodafone is up around 5% year-to-date, compared to FTSE 100's around 6% gain.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8225

• Primary support 8000
• Below 8000 opens 7855
• Primary objective 8600
• Daily VWAP Bullish
• Weekly VWAP Bearish

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