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FTSE 100 Moves Up, Can We Expect a Retest of 8,400?

Asktraders News Team trader
Updated 17 Oct 2024

The FTSE 100 Index saw a cautious beginning to day slowly build a head of steam, with a 33 point gain (+0.4%) leaving many bulls wondering whether this will finally lead into a retest of the 8,400 level. Despite a pullback from mining giants such as Rio Tinto (LON: RIO), down 1.9% due to disappointing stimulus news from China, other sectors contributed to keeping the index afloat.

The 8,400 level has seemingly been out of reach for the blue chip UK index since May, but at the current rate of gain, the retest could be less than a day away. That is with a big if, on momentum holding.

The London market's heavyweight miners faced pressure as copper prices dropped, responding to less buoyant Chinese stimulus announcements than anticipated. This downturn also had a knock-on effect on copper futures and the price of iron ore. The impact on these key commodities reflects investor hesitation and a potential cooling of demand from one of the globe's largest consumers.

Rentokil Initial's shares (LON:RTO), however, offered some positive news and stand up more than 9% on the day. Analyst Sam Dindol from Stifel highlighted that the company maintained its outlook for the full-year profit despite a profit warning issued in September. Rentokil's projection resilience indicates an underlying confidence in its business model and strategy moving forward despite short-term headwinds.


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Encouraging results also emerged from Entain PLC (LON: ENT, +5.2%), owner of brands such as Ladbrokes and Sportingbet. The firm's third quarter outperformed expectations, leading to a boost in their full-year guidance. This news suggests an effective adaptation strategy in the competitive gaming sector, with customer engagement and retention perhaps being key drivers of their success.

In the food delivery sector, Deliveroo PLC (LON:ROO) also reported positive metrics with a 6% rise in transactions during the third quarter, coupled with a 7% uptick in gross transaction value in the UK and Ireland. This growth underlines the company's consolidation in a market that has seen significant expansion since the onset of the pandemic/

Another significant corporate update came from N Brown Group PLC (LON:BWNG), the owner of retail stores like Jacamo and JD Williams, now subject to a takeover bid at 40p per share. With board members, who own the majority shares, backing the offer, prospects suggest a solid endorsement of the deal.

The FTSE 100's movement is one of cautious optimism, with certain sectors showing robust performance despite headwinds from global market uncertainty and commodity price fluctuations. Investors remain watchful, taking cues from both domestic enterprises and international developments.

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