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London's FTSE 100 began the trading day with a decline on Wednesday, reacting to concerning economic data that revealed a sharp contraction in economic output for July, raising concerns of a potential recession. The data disclosed that British economic output shrank by a more substantial-than-anticipated 0.5% in July compared to June. This contraction was worse than the expectations of economists surveyed by Reuters, who had predicted a milder 0.2% decline in gross domestic product (GDP). The stark GDP figures underscore the growing signs of economic weakening, possibly exceeding what the Bank of England had foreseen in preparation for its September policy meeting, the notion of the BoE seen on hold at its next meeting led investors to extend risk exposure with the FTSE reversing early losses to turn mildly positive into the close advancing 0.3% on the session.

Aviva, the British insurance company, is experiencing a 4.3% surge in its stock price, ranking as the top gainer in London stocks. Aviva has announced its intention to exit its joint venture with Singlife and divest its 25.9% stake in Singapore Life Holdings, along with two debt instruments. Sumitomo Life will acquire these assets for a total of £800 million ($995.76 million). This transaction is anticipated to be finalised in the fourth quarter of 2023, as confirmed by Aviva. Notably, the Singlife joint venture contributed £17 million to Aviva's operating profit in 2022. Despite this positive development, it's worth mentioning that Aviva's stock had faced a decline of approximately 15% year-to-date, up until the close of trading on Tuesday.

On the negative side of the ledger BP's stock price has experienced a decline of 2.6%, following the abrupt resignation of CEO Bernard Looney. His departure comes in the wake of revelations about undisclosed past personal relationships with colleagues. Bernard Looney's resignation is effective immediately, leading to CFO Murray Auchincloss assuming the role of interim CEO. This leadership transition raises questions about the future direction of the company. Some analysts, such as those at RBC Capital, speculate whether Murray's tenure might signal a return to a more traditional approach, emphasising value and growth in BP's core business. It's worth noting that BP's strategic shifts in recent times have left some investors unconvinced, with underperformance compared to its peers. Since Bernard Looney took the helm in February 2020, BP's shares have seen a 15% increase, whereas Shell, for example, has achieved a 26% gain during the same period. BP was pipped to the bottom spot as Ocado shares slid 4.2% on news overnight that Kroger has decided to temporarily halt its e-commerce expansion efforts in partnership with Ocado as it seeks to find a more defined and profitable path forward from its prior investment in the venture.

FTSE Bias: Bullish Above Bearish below 7442

• Above 7550 opens 7620
• Primary resistanceis 7625
• Primary objective 7335
• 20 Day VWAP bearish, 5 Day VWAP bullish

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