Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.06% on 27 December 2024. Moreover, Energy, Consumer Non-Cyclicals & Financials sector has faced a significant growth. While sectors such as Utilities, Real Estate and Basic Materials has witnessed a substantial decrease. 

Macro Update:  A report from restructuring firm Begbies Traynor revealed that the number of UK retailers in "critical financial distress" rose by over 25% in the last quarter. Between October 1 and December 16, 2,124 retailers faced severe financial challenges, up from 1,696 in the previous quarter. While this figure was slightly lower than the 2,142 reported in the final quarter of 2023, the increase reflects ongoing pressures from weak consumer confidence and rising operational costs. Julie Palmer of Begbies Traynor highlighted that although some retailers have managed to adapt, many, especially in general retail, are struggling under the weight of these financial pressures. Meanwhile, corporate news was sparse, but Centrica, the owner of British Gas, announced a £300m extension of its share buyback program, while Raspberry Pi saw its stock surge following its June listing. Additionally, life sciences investor Syncona gained after its portfolio company Achilles Therapeutics sold assets to AstraZeneca for $12mn. 

Top Market Movers: Among top gainers on FTSE 100 index, Centrica PLC (LSE: CNA’) witnessed a rise of 0.85% followed by Pearson PLC (LSE: PSON) which gained around 0.74%. 

Commodity Update: The U.S. Dollar Index remained steady near a two-year high, underscoring the dollar's strength amid persistent concerns over U.S. inflation. Most Asian currencies weakened on Thursday, with the Indian rupee touching a record low. Pressure on Asian currencies intensified last week after the Federal Reserve signaled fewer rate cuts in 2025, further bolstering the dollar's dominance in global markets. In commodities, gold down 0.14% to $2,650.22, while silver inched up 0.10% to $30.418, and copper rose 0.46% to $9,005.50. Brent crude slipped 0.05% to $72.83 per barrel, as optimism over China's economic stimulus efforts fueled hopes of a recovery in the world's largest oil-importing nation. 

Our Stance: London's stock market showed little movement by midday on Friday, with the FTSE 100 remaining flat at 8,135.72 amid quiet trading conditions. The holiday period saw most traders still absent from their desks, contributing to the lack of significant market activity. There was also no major news to drive market sentiment, leaving stocks largely unaffected as the year-end approaches. 

FTSE 100 

The FTSE 100 is hovering around the 8,135 level, showing little movement in recent sessions due to lower trading volumes during the holiday period. After testing the 8,000 support zone earlier in December, the index managed to hold above that level, which is seen as a positive short-term development. The 8,100-8,150 range is currently acting as a resistance zone, with the index struggling to break above these levels consistently. The 8,150-8,200 zone is seen as strong resistance, with the index encountering selling pressure around these levels. A breakout above 8,200 would likely signal a bullish continuation towards 8,500, the next key resistance level. 

Data Source - EODHD/Others 

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