On Monday, the FTSE 100 was under some pressure and extended its losses as traders awaited several economic indicators and corporate results. Market participants braced themselves for key inflation data releases in the UK and US on Tuesday and Wednesday as well as other UK data on the job market, GDP growth and manufacturing which could impact monetary policy expectations.
The market is also awaiting comments from Bank of England Governor Andrew Bailey, scrutinizing any hints regarding the trajectory of monetary policy. The latter could determine the path and performance of the equity market as expectations for interest rate cut size for this year continue to decline, weighing on sentiment.
FTSE 100 smaller stocks mostly edged higher including Ocado Group and Burberry Group which led the gainers, surging by 5.3% and 3.6%, respectively. Frasers Group also gained attention, climbing more than 3% after unveiling an £80 million share buyback scheme. However, the pharmaceutical sector faced headwinds, with AstraZeneca declining by 1.6% following Barclays’ decision to lower its price target for the company from 13,500 to 12,500 pence.