​​FTSE 100 Futures Fall Amid Inflation Concerns and Earnings Reports

London’s market sentiment led to a decrease in the FTSE 100 futures, driven by concerns over upcoming inflation data and earnings releases. The index fell by 0.5%. A speculative market coupled with the US-UK rate decisions also affected trading and interest rate decisions.

The regulators’ enforcement came after the Water regulator Ofwat had opened four new cases against water and wastewater companies based in the UK. Regarding the three FTSE 100-listed water companies, namely Severn Trent plc (LSE: SVT) and United Utilities Group plc, Ofwat made two formal notices.

The latest enforcement cases show that all eleven water and wastewater companies in England and Wales are, or have been, under Ofwat’s regulatory review for their sewage handling and water discharge standards.

Ocado Group PLC (LSE: OCDO) has announced that they have suffered a smaller first-half deficit and increased their earnings and cash flow estimates for the rest of the year. The virtual grocery chain has issued mid-term results that reflect revenue of £1.5 billion for the 26 weeks to 2 June, increased by 12.6%. The Group’s basic profit (EBITDA), which was nearly £71.2 million, increased by more than three times, and all three sections produced a profit.

FTSE 100 is projected to see its losses stretching on Tuesday, as the London blue-chip index fell for the 4th straight day even as Wall Street registered fresh record highs in last night’s trade.

FTSE 100 Futures Today: Technical Analysis

The FTSE 100 futures live index closed 0.8% down, impacted by confidence damage in the mining sector due to China’s GDP reading. Today’s futures trading shows a further decrease of 31 points to 8152, with the dollar at $1.2957.

Conversely, Federal Reserve Chair Jerome Powell’s statement that inflation is nearing its 2% target resulted in gains in the US markets, with the S&P rising by 0.3% and the Nasdaq Composite increasing by 0.4%. Positive news from Goldman Sachs and the new season of the second quarter helped push the Dow Jones Industrial Average to a 0.5% gain.

Rio Tinto’s London-listed Shares Fell 2%

The stocks of London-listed Rio Tinto fell 2% after indicating lower than the analyst’s forecasts for second-quarter iron ore shipments, affecting also industrial metal mining, which was 1.3% lower. Chances are that data such as the domestic consumer prices and producer prices’ index will likely be scrutinised this week as the UK’s central bank announces its monetary policy plan.

In the US, the signs for a rate cut in September multiplied after the Federal Reserve Chairman Jerome Powell signposted some developments on consumer prices in the past quarter. In the list of the most notable stocks, Ocado soared 18.2% and became the biggest gainer in the FTSE 250 after it reported a smaller-than-expected first-half loss and raised the financial outlook. On the other hand, Vanquis Bank was the worst performer, slipping by 13.5% after it declared that it may have no choice but to miss its financial targets.

The capacity utilisation rate was also 1.5% higher in the second quarter of 2023 than a year ago, at 80.3 million tonnes, because of the depletion of the port stocks but was lower than market expectations.

FTSE 100 Top Risers

Airtel Africa plc
Smith (DS)
Marks & Spencer Group plc
Sainsbury (J) plc
HSBC Holdings plc
Pershing Square Holdings Ltd
BP Plc
Darktrace plc
Shell plc

FTSE 100 Futures Forecast and Analysis

Starting from October 2023, the FTSE 100 has skyrocketed during these nine months. Since October 2023, the index has been up by double-digits. The bullish action has stopped in the past few weeks. Nevertheless, analyst projections for 2025 claim that growth opportunities are still there, so the Index should, in principle, reach those high numbers.

To date, the consensus is that interest rates will fall to about 3.5% a year from now.

Based on the latest data from The Economy Forecast Agency, the UK’s flagship index has the potential to reach 10,044 points by April. This would amount to an impressive 22.3% gain from today’s levels. Don’t forget historically, the FTSE 100 has typically delivered returns of just 8% per year.

However, as thrilling as this development is, it is critical to stress that this is the most optimistic scenario. Stock market forecast models are well known for their use of disordered, arbitrary data that are not really fit for the market they are used for. Consequently, the same forecast also shows that the index might just increase to 8,730 points, which is 6.3%.

UK Construction Firms Grapple

The new survey has exposed the fact that the construction and engineering firms in the United Kingdom, on the other hand, are worse off due to the lack of skilled labour.

BlackRock, on its part, stated in the announcement on Monday that money through it is recorded as the highest ever, making the company lead with a $10.65 trillion income in the second quarter. It was mainly due to the climbing client asset values and many investments directed into its exchange-traded funds.

The company’s earnings from its technology services, including the Aladdin risk management platform, showed a growth of 10% to $395 million. The company’s total revenue increased 8% to $4.81 billion. Net income for the quarter ending June 30 increased to $1.50 billion, or $9.99 per share, compared to $1.37 billion, or $9.06 per share, for last year.

Dow Jones Rises, Macy’s Falls, Trump Media Surges

The Dow Jones Industrial Average went higher by 0.53% to 40,211.72, the S&P 500 index rose by 0.28% to 5,631.22, and the NASDAQ Composite increased by 0.40% to 18,472.57.

Macy’s Inc.’s share declined by 11.7% following the company’s decision to cancel the anticipated buyout deal with Arkhouse Management and Brigade Capital. The prospect of another Trump presidency elevated the share price of Trump Media & Technology Group by 31.4%. After its holiday, Japan rallied by 0.4 per month with the Nikkei axis up. On the other hand, the Shanghai Composite index dropped 0.3%, while Hong Kong’s Hang Seng index lost 1.4%.

FTSE 100 Index: What’s Coming Up

Equity prices in the UK kicked off on a negative note, with most sectors registering declines, particularly those of Personal Goods, Mining & Industrial Metals, Support Services, and Life Insurance. The share of Mobile Telecommunications showed a minimal increase only.

Upon the initial market opening in London, the FTSE 100 Index observed a decline of 0.24%. Furthermore, the FTSE 250 and FTSE 350 indexes also moved backwards. By losing 0.25%, the FTSE 250 went down, and the FTSE 350 dropped 0.50%.

Relevant economic events that will likely be in the spotlight this week are the UK consumer prices and producer prices data, with the policy decision of the Bank of England approaching nearer.

Elsewhere, China’s focus is on the Third Plenum, a significant meeting of the Chinese Communist Party Central Committee that begins on Monday and ends on Thursday in Beijing, where major economic and policy reforms are typically announced.

The USA is in the middle of a peak earnings season. It has exited the first week of earnings with companies like Bank of America, Morgan Stanley, Netflix, Taiwan Semiconductor Manufacturing, etc.

Indispensable economic outcomes are also predicted, including the news from the European Central Bank that the rate decision might remain unchanged, but future guidance may be given.

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