FTSE Inches Higher After A Soft Start In A Slow Session -

FTSE Inches Higher After A Soft Start In A Slow Session

Mar 26, 2024Jeremy ParkinsonFinance, No picture0

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The FTSE 100 of the UK slightly increased on Tuesday by 0.07% reversing early losses, with mining stocks weighing it down, as conflicting statements from U.S. monetary policymakers sparked worries about the Federal Reserve’s interest rate projections. Industrial metal mining companies dropped by 1.1%, reflecting the decline in base metal prices. Federal Reserve officials stated on Monday that they still believe that inflation in the United States will decrease, but also acknowledged a growing sense of caution in the discussion, which has raised concerns about the outlook for interest rates.On the positive side of the ledger Ocado’s stock rises by 3.4% to 468.9p, making it the top gainer in London’s FTSE 100 index, as its retail unit reports higher sales due to competitive pricing. Ocado Retail maintains its outlook for the year after announcing a 10.6% increase in Q1 revenue, driven by a rise in customer numbers. The retail revenue for the quarter reached 645.3 million pounds ($815.92 million), with active customers increasing by 6.4% to 1.02 million. Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, reaffirms its forecast for full-year revenue growth and underlying EBITDA margin. As of the last close, OCDO stock has risen by 3% in the past 12 months. Flutter, the world’s largest online betting company, saw its shares rise by as much as 4% to a three-year high, making it one of the top gainers on the FTSE 100 index. The company is expecting a significant increase in core profit of around 30% this year, driven by a four-fold increase at its fast-growing and market-leading U.S. brand, Fanduel. Flutter anticipates its U.S. core profit to be between $635 million and $785 million, compared to last year’s $167 million. Additionally, the company forecasts a 17.5% growth in group revenue for 2024. Despite challenges in the Australian business and ongoing regulatory issues in the sector, analyst Richard Hunter from Interactive Investor believes that Flutter is performing well in the U.S. market. The stock has seen a 23.7% increase in the last 12 months.On the negative side of the ledger Auto Trader, a UK-based online car marketplace, is at the bottom of the FTSE 100 index as its shares drop by 5% to 704.8 pence. This marks the biggest one-day percentage drop since October 2022. JP Morgan analysts have reduced the price target for the company to 608p from 623p, citing challenging conditions in the automotive retail market. They anticipate further challenges in 2024, including higher than expected losses in Autorama, which are likely to impact the company’s earnings expectations for FY25. The analysts are cautious due to a potentially softer consumer backdrop, the rollout of digital retail, and challenging dynamics in the retail sector. Despite this, the average rating of 19 analysts on Auto Trader is “buy”, with a median price target of 714.50 pence. The stock has declined by 2.2% so far in 2024.FTSE Bias: Bullish Above Bearish below 7800