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FTSE 100 Latest Weekly Roundup & Predicted Close Today

Published 19/07/2024, 13:57
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Welcome to the Investing.com UK weekly FTSE 100 latest update, designed to keep investors informed on the newest UK stock market movements and key developments. In this weekly report, you'll find a summary of the last week's significant news, and trends affecting the FTSE 100 index, helping you stay ahead with timely insights for your investment decisions.

We update every Friday morning as soon as the London Stock Exchange (LSE) market opens at 8:00am UK local time (GMT+1).


FTSE 100 Share Price Opening 15th July 2024

The opening share price for this week, Monday 15th July, was 8,252.91, which sat -0.85% lower than at open on Friday 5th July, indicating that the FTSE had some ground to try and make up for the week ahead.

Investor Sentiment This Week For FTSE 100 Predictions

The FTSE 100 started the week with a -0.85% dip on Monday, suffering the biggest single-day dip since June 11th. The downward trend continued on Tuesday, with small gains trying to pull back the losses from Wednesday.

The big news around the world this week was the attempted shooting of presidential candidate Donald Trump. However the ripples were minimally felt this side of the Atlantic, although investors are keeping their eyes on movements in the energy and crypto sectors.

Closer to home, Rightmove reported that UK house prices have dropped this month by around 0.4%, although the number of agreed sales have increased by 15% year on year. According to their data, house purchase activity remained steady during the general election despite uncertainties around any new government proposals for the sector. The expectation is that the BoE will cut base rates in August or September, which would likely bolster the housing market.

On Wednesday 17th, inflation numbers were released in the UK. They remain aligned with the Bank of England expectations of an annual CPI rise at 2.0% for the second month running. Analysts have suggested that any interest rate cuts may now be postponed until September. The market is now pricing a 33% probability of an August rate cut, and a 74% September probability.

Finally, many analysts noted the obvious absence of a pensions bill in the King’s speech this week. Although it did mention a ‘pension investment’ bill, which is thought to be shorthand for the draft audit reform and corporate governance bill, and pension schemes bill.

Additional highlights were regarding a bill which will establish Great British Energy to boost renewable energy investment. The Labour government will also end zero-hours contracts and scrap VAT exemptions on private school fees to fund new teachers. Rail services will be nationalised, and local councils will gain control over bus services through an English devolution bill. Renters will get greater rights, including the end of no-fault evictions and reformed possession grounds.

As always, long-term investors are keeping an eye on the index and snapping up value buys wherever they can.

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We can see that the Investing.com UK community's sentiment towards the FTSE 100 index has interestingly remained almost the same as last week, with a 43-57 Bearish-to-Bullish split when compared to last week’s 46-54 result. It will be interesting to see whether this Bearishness continues over the next few weeks, or if it can still be chalked up to ‘new government’ jitters.

FTSE 100 Recent Sentiments

Notable Movements & News

Here are some of the top stories from the footsie 100 constituents over the past 5 days.

Burberry Nosedives As Another CEO Exits

Burberry Group PLC (LON:BRBY) has suffered a substantial 15% nosedive after parting ways with chief executive Jonathan Akeroyd, who joined in 2021 to lead a turnaround, after a sharp fall in profits last year amid struggles for luxury brands. The FTSE 100-listed fashion house has appointed Joshua Schulman, former Michael Kors (NYSE:CPRI) and Jimmy Choo boss, as his replacement.

Group chair Gerry Murphy praised Akeroyd's strategy and noted Schulman's record of building global luxury brands and driving growth. This marks Burberry's second CEO change since starting its turnaround.

Analysts commented on the change following a 34% profit decline and a disappointing first quarter. Burberry expects an operating loss for the first half and has suspended dividend payments.

Jelena Sokolova of Morningstar noted Burberry’s long-term underperformance and said, "With current collections, it looks like they have pushed pricing too far and too quickly." She added that Burberry has "issues with their product mix" and while the brand "still has potential [...] it will not be an easy fix."

Affordable Housing from Lloyds Bank?

Lloyds Banking Group PLC (LON:LLOY) plans to expand its private rental housing arm, Citra Living, into social housing, converting disused office sites into affordable housing. The UK's largest lender is selling a former data and office space in Pudsey, West Yorkshire, to a developer to create 80 homes rented at about half the usual rate.

Lloyds will be "the first UK bank to actively enter the market to own good quality housing available to house families at risk of homelessness." Citra will buy and manage the homes, with local authorities handling day-to-day management.

Construction in Pudsey will start in 2026, while Cambridge will host Citra's pilot social housing scheme, offering rents at 80% of local market rates. This initiative will support families currently homeless or in unsuitable accommodation.

Unilever Moves Towards a Higher-Growth Portfolio

After last week’s Britvic PLC (LON:BVIC) acquisition announcement, Unilever PLC (LON:ULVR) revealed that it has sold its Indian home water purification business, Pureit, to NYSE-listed Smith AO Corporation (NYSE:AOS) for $120 million cash. The deal is expected to be completed before the end of this year.

The President of Unilever Home Care has said that the move solidified a milestone in Unilever’s journey to focus on their portfolio evolution towards more higher-growth spaces.

Pureit generated annual sales of approximately US$60 million, primarily in India, last year.

Today's FTSE 100 Close

The above investor sentiment and factors driving this week's ‘Footsie’ volatility meant that today the FTSE 100 is likely to close at a price which sits around a slightly lower mark than the weekly FTSE 100 opening price of 8,252.91.

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