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UK equities began the week on a downward trend due to rising tensions in the Middle East, causing investors to proceed with caution. Additionally, disappointing corporate earnings had a negative impact on the market. However, the FTSE 100 index, which is heavily influenced by resources, reversed as the trading progressed to close in the green 0.4%. The mining sector experienced the most significant losses, with precious metal miners declining by 2.9%, while oil and gas shares, which carry significant weight, dropped by 1.6% in response to lower crude prices. This decline was attributed to market participants reducing risk premiums in light of the escalating tensions in the Middle East and concerns about a potential broader regional conflict.

London's emphasis on the energy and mining sectors was apparent as UK-listed stocks performed less favourably compared to the rest of Europe. Some of the best performers on the FTSE 100 were airlines easyJet and IAG, benefiting from the less severe impact of Middle Eastern geopolitics on oil prices. On the other hand, energy producers BP and Shell were following the downward trend of crude prices. Additionally, precious metals producer Fresnillo saw a decrease as investors took profits following a significant surge in stock value over the past month due to record gold prices. Similarly, others in the sector, including Anglo American and Glencore, were also experiencing a lack of investor favour.

UK-based investment management company Ashmore saw a decrease in its quarterly Assets under Management (AuM), leading to a 1.5% drop in its stock price. The company experienced net outflows of $2 billion during the quarter, resulting in a decrease in AuM from $54 billion to $51.9 billion since the end of December. Ashmore attributed the outflows to institutional clients prioritising risk reduction, particularly in local currency, blended debt, and corporate debt investments, although there was a minor net inflow in equities. Despite ongoing challenges, the company expects performance fees to be higher than previously anticipated. Over the past 12 months, the company's stock has fallen by 17.4%.

FTSE Bias: Bullish Above Bearish below 7900

• Below 7870 opens 7844
• Primary support 7887
• Primary objective 8059
• 5 Day VWAP bearish
• 20 Day VWAP bullish

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