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On Thursday, share and bond markets continued a global rally, with the FTSE gaining 1.2%. This surge was driven by traders who doubled down on their bets that world interest rates may have reached their peak. While the Bank of England (BoE) did not explicitly indicate that rate cuts were imminent, the mere suggestion of a potential change after 20 months of consistent rate hikes was sufficient to invigorate market optimism. This rally was likely influenced by the belief that the era of rising interest rates might be coming to an end, which would have various implications for financial markets and investment strategies.

Sitting at the top of the blue chip index was Ocado with shares up over 7% driven by a combination of factors, first robust earnings from Sainsburys, who anticipate that its full-year profit will be at the upper end of its previous guidance. This outlook was supported by the company's report of slightly better-than-expected flat profit for the first half of the year. Secondly, US competitor DoorDash, a popular food delivery platform, experienced a significant surge in its stock price due to a robust fourth-quarter core profit forecast, these two factors led investors to pile into Ocado shares as a read through to likely positive results ahead for the online grocer. Shares of the telecom company BT Group increased by 5%, making it one of the top percentage gainers on the FTSE 100 index. BT's performance in the second quarter, which slightly exceeded expectations, is positioning the company to meet its 2024 guidance. Notably, its adjusted core profit (EBITDA) rose by 3% to £2.06 billion, surpassing the consensus forecast of £2.03 billion. These results likely contributed to the stock's positive movement.

On the negative side of today's ledger sits Hikma Pharmaceuticals, a British drugmaker, experienced a significant decline in its share price, falling 4.9%. This decrease marked the largest one-day percentage drop in over a year and left the drug maker bottom of the FTSE. The primary reason for this sharp decline was the company's weaker outlook for its Injectables segment, which is its largest unit. Hikma now anticipates that its full-year (FY) revenue growth and core operating margin for the Injectables segment will be at the lower end of its previous forecast range of 7% to 9% and 36% to 37%, respectively. This outlook revision was influenced by the closure of a manufacturing facility in Sudan and short-term capacity constraints in the U.S. market. On a more positive note, Hikma adjusted its guidance for its Generics business, expecting a core operating margin of approximately 20%. This falls at the upper end of its prior guidance range of 18% to 20% for the year ending December 31. Despite this one-day drop, Hikma's shares were up 17% year-to-date. It's worth noting that the pharmaceutical industry is subject to various factors, including manufacturing disruptions, regulatory changes, and market competition, all of which can influence financial performance and investor sentiment.

FTSE Bias: Bullish Above Bearish below 7300

• Below 7300 opens 7210
• Primary support at 7200
• Primary objective 7500
• 20-Day VWAP bullish, 5-Day VWAP bullish

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