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On Wednesday, the FTSE 100 in the UK experienced a decline due to underwhelming earnings reports from HSBC Holdings and Glencore, which had a negative impact on banking and mining stocks. Investors were also waiting for the last meeting minutes from the U.S. Federal Reserve to gain insight into its policy outlook. The FTSE 100 index, which represents the top 100 companies on the London Stock Exchange, dropped by 0.6%.

HSBC's stock on the FTSE 100 took a hit after the company reported a lower-than-expected annual profit. The London-listed shares of HSBC Holdings dropped by as much as 7.5% to 595.2p, making it the top percentage loser on the FTSE 100 index. The decline was attributed to a $3 billion charge on its stake in China's Bank of Communications (BoCom) due to increasing bad loans in the second-largest economy. HSBC's annual pre-tax profit for 2023 was $30.3 billion, which was a 78% increase from the previous year but fell short of the consensus estimate of $34.1 billion. This news caused the stock to hit a session low , despite having gained over 23% in 2023. Europe's largest lender mentioned that the writedown on BoCom came after a review of its future cash flows and outlook for loan growth and interest margins.

Glencore's shares dropped by 3.8% to 375.45 pence after its core earnings shrank in 2023. The company's adjusted core earnings for the year halved to $17.1 billion from $34.1 billion due to lower commodity prices. Glencore also reported that its net debt increased to $4.92 billion at the end of the year, from just $75 million at the end of 2022. Additionally, the company's payout of $1.6 billion does not include a new buyback scheme or a special dividend after the existing one ends this month. As a result, Glencore's stock has declined by approximately 22% in the last 12 months, making it one of the top percentage losers in the FTSE 100 index.

FTSE Bias: Bullish Above Bearish below 7650

• Below7450 opens 7360
• Primary support 7450
• Primary objective 7825
• 5 Day VWAP bullish
• 20 Day VWAP bullish

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