Image Source: Pexels

The FTSE 100 fell on Tuesday, weighed down by a stronger pound and declines in travel and leisure stocks, which stalled efforts to recover from the previous session's selloff. Travel stocks were among the main drags on the index, with IAG, the parent company of British Airways, dropping 6% after Delta Air Lines cut its first-quarter profit outlook and flagged rising uncertainties in the U.S. economy. IHG, the operator of Holiday Inn, also slid 3.3%. Overall, the travel and leisure sector suffered a 2.3% decline, marking the steepest losses among sectors. Meanwhile, the pound rose roughly 0.4% against the dollar, amplifying pressure on the export-heavy index. 

The British Retail Consortium (BRC) reported a sharp slowdown in February retail sales growth, with like-for-like sales rising just 0.9% y/y, down from 2.5% in January. This non-seasonally adjusted data can be volatile due to factors like Black Friday or Easter timing, but the drop from January’s above-average growth to February’s below-average performance suggests more than an anomaly. The December-January boost from holiday sales now appears exceptional for 2024. February's growth came entirely from food sales, likely driven by price increases rather than higher volumes, as food sales rose 2.3% y/y in value. With official ONS retail data for February due on 28 March, the BRC’s findings hint at weak consumer goods volumes amid rising inflation.

Single Stock Stories & Broker Updates:

• British home builder Persimmon's shares rose 5.5%, making it the top gainer on London's FTSE 100 index. The company plans to build 11,000 to 11,500 homes in 2025, up from 10,664 last year, following a 10% rise in underlying PBT to £395.1 million in 2024, surpassing estimates. Shares are up less than 1% YTD.
• British Airways owner IAG falls 6.4%, hitting its lowest since January 6. Delta Air Lines halves Q1 profit estimates, citing weakened demand amid U.S. economic uncertainty. Jefferies predicts softness in U.S.-exposed travel stocks post Delta's warning. Holiday Inn owner IHG down 2.7%, while ICAG sheds ~2% YTD.
• Domino's Pizza Group shares fell 2.9% to 280.9p amid volatility, despite rising 2.3% earlier. The company expects adjusted core profit for 2025 to align with market expectations after a slow start, with like-for-like sales growth of 0.7% in the first 10 weeks and 3% growth in Q4. Jefferies analysts noted a slowdown in system sales growth to 2.4% year-to-date from 2.8% in Q4 FY24. Ian Bull is announced as the new chair, succeeding Matt Shattock. The stock is down 9.65% year-to-date.
• Shares of TP ICAP rose 2.7% to 266p; the company plans to list its data and analytics business in the U.S. by Q2 2025 and announced a 30 million pound share buyback. It posted a FY adjusted pretax profit of 303 million pounds, up from 271 million pounds in 2023, and remains comfortable with 2025 market expectations for adjusted EBIT. The stock increased by 32.1% in 2024.
• Ferrexpo shares fell 3.4%; company delays FY 2024 results due to potential actions at Ferrexpo Poltava Mining; stock up 35.9% over the past year.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8950

• Primary support 8700
• Below 8700 opens 8600
• Primary objective 9050
• Daily VWAP Bearish
• Weekly VWAP Bearish

(Click on image to enlarge)

More By This Author:

Daily Market Outlook - Tuesday, March 11
Daily Market Outlook - Monday, March 10
The FTSE Finish Line - Friday, March 7