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Britain's major indexes held steady on Wednesday as investors took a breather following a recent surge driven by easing global trade tensions. Attention is now shifting to corporate earnings and the broader economic landscape. Goldman Sachs has raised its 12-month forecast for the FTSE 100 to $8,800 from $8,500, citing a significant trade agreement between the U.S. and China that has eased fears of a global recession, despite a lacklustre day in trading. On the economic front, Catherine Mann, a member of the Bank of England's rate-setting committee, revealed her decision to keep borrowing costs unchanged last week, noting the UK's labour market was more resilient than expected. Although data released on Tuesday showed signs of a softening labour market in the UK, economists suggested the decline was minor. On May 8, the Bank of England lowered its main Bank Rate by 25 basis points, a decision supported by five of the nine members of the Monetary Policy Committee.

Single Stock Stories & Broker Updates:

• Shares of Spirax Group fell 5% to 6,270p, making it one of the top losers on the FTSE 100. For the first four months, the company reported a lower adjusted operating profit margin year-on-year due to customers delaying order shipments. It achieved low single-digit organic revenue growth and maintained its forecast for organic revenue growth and profit margin. However, exchange rates are expected to reduce FY sales by 3% and adjusted operating profit by 6%. The company plans to manage tariff impacts through surcharges, pricing, and limited manufacturing reorganisation. SPX is down 9% year-to-date.

• Burberry shares rise 9.31% to 903.8p after reporting FY adj. operating profit of £26 mln, up from £11 mln. The company plans to cut people-related costs potentially affecting 1,700 jobs globally and is in early turnaround stages amid economic uncertainty. Retail sales showed significant improvements in H2 compared to H1. Year-to-date, BRBY is down approximately 8.4%.

• Imperial Brands shares fell 7.8% to 2,664 pence, marking its biggest one-day drop since October 2019. CEO Stefan Bomhard will retire after five years, with finance chief Lukas Paravicini succeeding him on October 1. Murray McGowan will become CFO. The company reported a 1.8% rise in first-half adjusted operating profit, missing the 2% estimate, but reaffirmed its annual forecast. Shares are up 13% YTD.

• Shares of Compass Group fell by 4.8% to 2,482 pence but later recovered slightly to a 1.4% decline. The company maintained its annual profit and revenue forecasts, reporting an 11.6% increase in underlying operating profit for the first half to $1.63 billion, exceeding the expected $1.61 billion. Ten brokerages rated the stock as "buy" or higher, with a median price target of 2,700 pence. The stock is down 3.5% year-to-date.

Technical & Trade View

FTSE Bias: Bullish Above Bearish below 8700

• Primary support 8500
• Below 8500 opens 8250
• Primary objective 8900
• Daily VWAP Bullish
• Weekly VWAP Bullish

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