Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 1.37% on 04 February 2026.

Macro Update: In early 2026, the UK economy shows resilience as the Services PMI hit a five-month high of 54.0. However, persistent 3.4% inflation and rising labor costs may delay further interest rate cuts beyond the current 3.75%. While the FTSE 100 recently reached record highs, unemployment is projected to rise.

Top Market Movers: Among top gainers on FTSE 100 index, DCC PLC (LSE: DCC) witnessed a rise of 8.62% followed by Beazley PLC (LSE: BEZ) which gained around 8.62%.

Commodity Update: The U.S. dollar traded largely steady on Wednesday as investors stayed cautious after a brief U.S. government shutdown ended, while the yen hovered near a two-week low ahead of a closely watched national election. Precious metals strengthened, with gold rising 2.74% to USD 5,071.90 and silver up 4.01% to USD 86.64. Copper slipped 0.77% to USD 13,365.40. Brent crude edged 0.10% higher to USD 67.98 amid renewed geopolitical tension in the Strait of Hormuz.  

Our Stance: The UK's fragile economic recovery, with growth forecast at 0.9%, contends with high unemployment and persistent inflation. The Bank of England maintains a cautious 3.75% rate in a "wait-and-see" stance to balance these risks against stagnation.

FTSE 100: The FTSE 100 advanced 50.16 points to trade near 10,364.75, continuing to hold comfortably above the key 9,800 support zone and preserving a stable broader structure. The 21-day and 50-day Simple Moving Averages remain positioned below current levels, offering underlying support and allowing scope for near-term consolidation. Momentum has improved, with the RSI turning firmer. On the downside, immediate support is placed near 8,950, while upside resistance is seen around 10,400 and 10,600.

Source: Charts by EODHD/Others

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