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British stocks rebounded on Wednesday after a dip in the previous session, buoyed by Kyiv's support for Washington's 30-day ceasefire proposal with Russia. Strong corporate earnings further bolstered the domestically focused index, with the benchmark FTSE 100 climbing 0.6%. Meanwhile, on Tuesday, the U.S. announced the resumption of military aid and intelligence cooperation with Ukraine. In a separate development, new U.S. tariffs on steel and aluminium imports came into effect on Wednesday, triggering an immediate response from Europe, which vowed to impose counter-tariffs on U.S. goods worth 26 billion euros ($28 billion) starting next month.

Employment expectations in the UK have turned negative, according to S&P Global’s Business Outlook Survey. Business activity expectations also saw a sharp decline, though firms still anticipate rising prices. Unlike monthly PMI surveys, this triannual outlook focuses on future trends. Compared to other countries, the UK ranks poorly on output price expectations, second only to Russia, but aligns more closely with global trends for overall business activity despite a sharp drop since October's unusually positive results. The survey highlights worsening employment concerns and persistent inflation issues, echoing dynamics behind the MPC’s activist vote shift.

Single Stock Stories & Broker Updates:

• JD Sports shares drop 3.2%, ranking among FTSE 100's top losers. Puma's grim outlook, citing geopolitical tensions and economic challenges for 2025, weighs on the sports retail sector. JD Sports had already cut forecasts in January, citing a volatile market. Shares are down 37.6% over the past year.

• Legal & General drops 1.5% , lagging on FTSE 100. FY operating profit at 1.71 bln pounds, below Jefferies' 1.75 bln pounds estimate. Earnings align with consensus, showing minor variances. Company plans to return over 5 bln pounds to investors via buybacks and dividends in three years. Stock up 6.57% year-to-date.

• Hochschild Mining surges nearly 13%, marking its largest intraday gain since July 2023, as the precious metals miner resumes dividend payments. The company announces a final dividend of 1.94 cents.Hochschild reports a 54% year-on-year increase in adjusted EBITDA. Peel Hunt highlights the company's dividend policy as a strategic balance between rewarding investors and maintaining funds for growth investments. Despite today’s rally, HOCM shares are down 2.4% year-to-date as of the previous close.

• Shares of Gym Group rise 3.7% to 140p, leading FTSE small-cap gainers. Co reports FY adj. pretax profit of 3.6 mln pounds, beating analyst estimates of 1.7 mln pounds. Group adj EBITDA LNR for FY25 expected at 49.0-50.8 mln pounds. Investec Bank raises FY25 forecasts by 2.4% and FY26 by 1.7%. GYM reports strong trading in January and February, plans 14-16 new sites in 2025, part of a 50-site expansion over three years. Stock rose ~40% in 2024.

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

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