FTSE 100 Edges Lower Amid Global Trade Tensions

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.56% on 19 January 2026. 

Macro Update: On January 17, 2026, President Trump announced a 10% tariff on eight European nations, effective February 1, to pressure Denmark into selling Greenland. The levy, rising to 25% in June, has prompted the EU to prepare $108 billion in retaliatory measures. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 5.13% followed by Endeavour Mining PLC (LSE: EDV) which gained around 2.20%. 

Commodity Update: The dollar weakened on Monday as markets turned risk-averse following fresh tariff threats from U.S. President Donald Trump linked to Europe and Greenland. Safe-haven demand lifted the yen and Swiss franc. Gold surged 1.72% to USD 4,674.70, silver jumped 5.53% to USD 93.44, and copper rose 1.25% to USD 12,965.00. Brent crude was steady at USD 64.10 amid lingering Iran supply concerns. 

Our Stance: The UK economy is grappling with ongoing foundational issues, demonstrated by sluggish growth and a weakening job market despite moderating inflation. The recent interest rate reduction by the Bank of England underscores these weak points, suggesting a need for careful investment. Focus must be placed on future policy changes and the twin dangers of growing government debt and a potentially steeper economic downturn.  

FTSE 100: The FTSE 100 fell 59.23 points to trade at 10,176.06, yet continues to hold comfortably above the key support zone near 9,800, preserving a stable broader structure. The 21-day and 50-day SMAs remain positioned below current levels, providing underlying support and allowing scope for near-term consolidation. Momentum remains steady, as reflected by an improving RSI. Immediate support is placed around 8,950, while upside resistance is seen near 10,250 and 10,400.  

Source: Charts by REFENITIVD