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On Tuesday, the FTSE 100 Index in the UK experienced a slight upward movement gaining 0.24%, driven in part by labour market data that hinted at the possibility of the Bank of England nearing the end of its interest rate hike cycle. In the three months leading up to July, the unemployment rate in Britain increased to 4.3%, up from the previous rate of 4.2% recorded a month earlier. However, it's important to note that wages excluding bonuses saw a notable rise, with a year-on-year increase of 7.8%. This wage growth aligns with the expectations of economists as per a Reuters poll. Following the release of the unemployment data, the British pound edged lower against the U.S. dollar, reflecting the market's reaction to the news. The rise in the unemployment rate may have contributed to this movement, although the strong wage growth could counterbalance some of the concerns associated with higher unemployment.

However, the FTSE100 gains were limited due to a significant drop in the share price of packaging producer Smurfit Kappa. Smurfit Kappa, a London-listed company, saw a significant decline in its share price, dropping as much as 12.6% to 2,680p, marking its lowest point since July 11. This decline made Smurfit Kappa the top percentage loser on the FTSE 100 index. The stock price suffered as a result of the announcement that Smurfit Kappa and WestRock would merge to create one of the world's largest paper and packaging producers, with an estimated value of nearly $20 billion. Under the terms of the merger, WestRock stockholders will receive one new Smurfit WestRock share and $5 in cash for each share they hold, equivalent to approximately $43.51 per share. The newly formed entity, to be named Smurfit WestRock and domiciled in Ireland, will become the largest listed global packaging partner in terms of revenue. Despite the merger's potential benefits, the market reacted with a decline in Smurfit Kappa's stock price, which was down approximately 10% at the time, pushing its year-to-date losses to more than 9%.

On the positive side of the ledger Associated British Foods (AB Foods), the owner of Primark, stood out as the top performer on the FTSE 100. AB Foods' shares rose by 5.6%, making it the leading percentage gainer on the FTSE 100.The surge in AB Foods' stock price came after the company raised its profit outlook for the fiscal year for the second time in four months. The increased profit outlook was attributed to strong performance from both the Primark clothing business and its food operations. AB Foods now expects its adjusted operating profit for the year ending September 16 to exceed its previous expectation of being "moderately ahead" of the £1.435 billion ($1.8 billion) reported for 2021/22. This positive news led ABF's stock to reach its highest level since July 24, with shares at their session high. The year-to-date gains for AB Foods now stand at more than 33%, reflecting the market's optimism and confidence in the company's performance and outlook.

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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