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On Thursday, UK stock markets experienced a decline, driven by a surge in government bond yields and ongoing tensions in the Middle East, which left investors adopting a risk-averse stance. Amidst this market sentiment, Rentokil Initial, witnessed a substantial drop in its stock value due to concerns over weakening demand. The FTSE 100, which has a significant focus on commodities, registered a decline of 0.95%. In the United States, Treasury yields reached 16-year highs, with anticipation building around Federal Reserve Chair Jerome Powell's forthcoming speech in New York. Investors were eager to gain insights into the potential trajectory of interest rates, which added to market uncertainties. Furthermore, the heavyweight oil and gas sectoral index experienced a 0.2% decrease, mirroring the downward trend in oil prices. In addition, industrial metal mining stocks faced a 0.2% decline as copper prices slipped, highlighting the interconnectedness of global economic factors that influence the markets. Sitting at the top of the table today is Spirax Sarco Engineering (2.27%) as investors take the lead from the CEO who recently announced personal share purchases. In hot pursuit is Admiral (+1.93+) one of the top gainers, after another motor insurance group, Sabre Insurance Group plc, raised its full-year guidance due to higher-than-expected premium growth in the third quarter Sabre increased its 2023 year-on-year growth guidance to between 20% and 25%, and maintained its profitability outlook.

Leading the charge lower Rentokil Initial Plc(-17.5%), a pest control company based in the UK, saw its stock price plummet by over 16% sending it to the bottom of the blue chip index. The decline was prompted by Rentokil's acknowledgment of a weakened consumer demand environment in North America. Rentokil Initial anticipates that their North American full-year performance will be slightly below their previous expectations due to uncertainties in the current market conditions. They expect the annual adjusted operating margin for North America to fall within the range of 18.5% to 19%, a reduction from their earlier guidance of approximately 19.5%. Notably, the company's quarterly revenue experienced significant growth of 59.9%, primarily attributed to merger and acquisition (M&A) activities, including the acquisition of Terminix. Despite the recent decline, Rentokil Initial's stock had performed well, with a year-to-date increase of 17.09% as of the most recent close.

FTSE Bias: Bullish Above Bearish below 7600

• Below 7450 opens 7385
• Primary support is 7385
• Primary objective 7858
• 20 Day VWAP bullish, 5 Day VWAP bearish

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