The FTSE Finish Line – April 19 – 2023

FTSE 100 Inflation Data Dents Risk Sentiment

The FTSE 100 winning streak looks set to end at the close of trade today, the driver for the downbeat mood amongst UK investors has principally derived from another surprise in UK inflation data, coming on the heels of Tuesday’s employment numbers which pointed towards a fresh round of inflationary pressure in the jobs market, today’s UK inflation print has added further pressure on the BoE, coming in hotter than expected at 10.1% versus and expected 9.8% sparking another flurry of hawkish bets from bond investors, markets are now close to fully pricing a 25bps move by the BoE at their May meeting. This has led to equity investors pulling back on risk exposure. The current round of inflation data leaves the UK as Western Europe’s poster child for inflation leading other developed market economies with stubborn double digit inflation.

Industrial miners who have been the recent bullish bet darlings have given back some gains today, notably AntoFagasta shedding 2.7% at the open of trading, the miners copper production numbers failed to meet expectations for the March quarter, the miner sited water availability and reduced ore grades as an ongoing issue. Glencore shares are also coming under pressure as investors expressed concerns around the firm’s ability to meet climate change commitments, according to Reuters reporting, the stock gave up just under 1% on the news. In further Glencore developments, the business continues to aggressively pursue Canada’s Teck Resources in an open letter to shareholders Glencore have confirmed it will improve its all share bid of $22.5billion as the Teck board continue to encourage shareholders to reject Glencore’s advances, meaning the takeover could turn hostile if the board continues to reject the approach. 

On the positive side of today’s ledger British American Tobacco are topping the table with shares rising over 3.4% on the session as the Chairman Luc Jobin has affirmed fiscal year 2023 revenue, EPS and guidance at today’s AGM further touting new product development in alternative consumption methods as the route to the businesses future success. 

FTSE Bias: Intraday Bullish Above Bearish below 7875

  • Primary support  is 7635

  • Primary objective 7946

  • Below 7500 opens 7400

  • 20 Day VWAP bullish, 5 Day VWAP bullish