The FTSE Finish Line - October 24 - 2024
FTSE To Snap Its Losing Streak, As BoE Bailey Strikes A Dovish Tone
Following Bank of England (BoE) Governor Andrew Bailey's statement that U.K. inflation is falling more quickly than central bankers had predicted, which increased anticipation of another rate drop on November 7, U.K. equities saw a little increase on Thursday. Investors, however, ignored a poll that revealed U.K. company growth in October had fallen to an 11-month low. The benchmark FTSE 100 fell 0.6% the day before, but it rose 0.16% today.
In single stock stories Unilever, a FTSE 100 heavyweight, saw a 3.2% jump in its share price, making it one of the top gainers, after reporting Q3 underlying sales growth of 4.5%, exceeding the analysts' consensus of 4.2%. The company achieved its biggest gain in sales volumes in 3-1/2 years, driven by product innovations and slower price hikes, which attracted more shoppers. Unilever maintained its 2024 forecast of underlying sales growth within the multi-year range of 3-5% and an underlying operating margin of at least 18%. The stock has gained 26.1% year-to-date.
Anglo American's shares rise 3.7% as the company maintains its full-year copper and diamond production forecasts despite declines in the third quarter, and raises nickel and refined PGMs production forecasts. The company is also demerging its platinum unit in the coming months.
Barclays' shares rise 1.7% to 242.4p, outperforming the FTSE 100 index which is up 0.4%. The British lender's Q3 profit increased by 18%, exceeding analysts' average forecast. Barclays reported a Q3 PBT of £2.2 billion, higher than the market consensus of £1.97 billion. The company has raised its full-year net interest income forecast, expecting to exceed £11 billion, up from its previous target. The stock has risen around 55% so far this year.
Travis Perkins Plc's shares drop up to 7.3%, making it the top percentage loser on the FTSE 250 index. Britain's largest buildings materials supplier slashes its annual profit outlook for the second time in three months due to weakness in its merchanting business. The company cuts its 2024 adjusted operating profit by 10% from its August forecast to around 135 million pounds. Travis Perkins reports a 5.7% decline in Q3 group revenue, with the merchanting segment's revenue falling 8.2% on a like-for-like basis. Despite this, the stock has risen approximately 11% year-to-date as of the last close.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 8225
Primary support 8100
Primary objective 8600
Daily VWAP Bearish
Weekly VWAP Bearish
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!