FTSE 100 Futures Just Off Best Levels After Benefitting From Softer UK CPI

FTSE 100 futures are 0.7% better off, benefitting from the softer than expected run of inflation data as BoE expectations reprice dovishly and the GBP softens.

• Real estate leads the way higher on a sectoral basis, as you would expect given the aforementioned driver.
• Meanwhile, utility names benefit from a Times report suggesting that “Rishi Sunak is poised to water down some of the government’s biggest net zero commitments, including plans to phase out the installation of new gas boilers and delaying a ban on the sale of new diesel and petrol cars.”
• Conversely, the pullback from YtD highs in crude oil futures and a move away from session highs in European natural gas prices has weighed on the energy sector, which breaks the broader theme and trades lower on the day.
• Technically, the current uptrend in FTSE 100 futures remains intact and initial resistance to watch is 7,810.5, the 15-Sep high. A break of this level would confirm a resumption of the uptrend that started Aug 18 and pave the way for a climb towards 7,894.50, the May 2 high on the continuation chart. Firm support is seen at 7,595.70, the 20-day EMA.