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On Tuesday, London's FTSE 100 experienced a drop, impacted by declines in energy and defence sectors, as investors contemplated new employment data that bolstered the likelihood of an interest rate cut by the Bank of England later this week. The FTSE 100, which is comprised of the UK's leading companies, dipped 0.7%, having previously closed 1% higher, while the midcap FTSE 250 index remained mostly steady. Energy stocks decreased by 1.1%, following a decrease in oil prices due to strengthening prospects for a Russia-Ukraine peace agreement, which raised hopes for a potential relaxation of sanctions. Britain's unemployment rate climbed to its highest level since early 2021, while private sector wage growth slowed to its weakest pace in nearly five years ahead of Finance Minister Rachel Reeves' annual budget last month. This discouraging jobs report intensified expectations that the Bank of England might cut interest rates on Thursday to support the faltering economy.

The Aerospace and Defence index fell by 1.8% amid discussions regarding a possible peace deal in Ukraine. Major defence companies in Britain, including Rolls-Royce, BAE Systems, and Babcock, saw their shares decline between 1.4% and 4.1%. U.S. officials stated on Monday that Ukraine might receive security assurances based on NATO's Article 5 mutual defence agreement under the suggested peace terms with Russia. Conversely, precious metals and mining stocks rose by 1.4%, while travel-related indices gained 0.9%, with at least 17 sectors experiencing positive trading. In individual stock movements, IG Group shares surged by 5.6% after the online trading platform announced expectations of reaching revenue growth around the midpoint of its projected range for 2026. Similarly, Serica Energy's stock increased by 2.71% following news of its agreement to acquire a portfolio of assets in the Southern North Sea from Spirit Energy.

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bearish
• Weekly VWAP Bearish
• Above 9720 Target 9800
• Below 9700 Target 9550

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