By Patrick Munnelly, Market Analyst, Tickmill
The FTSE 100 Index has continued to struggle for upside traction for a second session even as US inflation came in marginally below the 5% headline level at 4.9%, US markets have responded positively but the positivity has failed to carry over to the UK market ahead of tomorrow’s Bank of England meeting, Investors remain cautious. The index closed down 22 points at 7741.33.
FTSE 100 biggest movers
On a positive note Melrose Industries LON:MRO finished the session at the top of the index, positing gains in excess of 4.8%, Melrose delivered an upbeat earnings outlook which saw investors reward the shares lifting the stock to print three year highs. The company confirmed its intention to remain a stand alone aerospace play post the recent spin off of its automotive interests while also confirming fiscal year revenue inline with forecasts. The move in Melrose has given a sector lift to Rolls Royce LON:RR. trading up 3.0%.
Compass Group LON:CPG was also in the green trading up as high as 4% on the session before sliding a little later in the day to hold 1.2% gains. The company announced upbeat earnings and raised fiscal year 2023 revenue, profits and margin. The bumper profits have been supported by the post pandemic return to work trend. Additionally the company confirmed a share buy programme of £750 million above analysts expectations.
On the negative side of the ledger Pearson LON:PSON sits at the bottom of the table on the day trading down over 3.5% on the session. The losses come in spite of the business announcing the appointment of Rightmove CFO Alison Dolan as a Non Exec along with New York Times Chief Product Officer Alex Hardiman, also as a Non Exec.
According to the Times hedge funds are shorting online retailing stocks as they are betting that pandemic gains will be reversed as shopping habits normalise, The reporting notes that Ocado LON:OCDO is a specific target. This has led to a dip in the shares, giving up just over 4.2% on the day.
Podcast: Everything you need to know about the FTSE 100 Index
Subscribe to our podcast on your favourite platform
Don’t miss out on our weekly podcast. You can find us on Spotify, Soundcloud, Amazon, Apple, YouTube and many other popular platforms
