FTSE 100 Extends Gains As Soft Landing Narrative Holds

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.93 % on 25 February 2026. 

Macro Update: The UK economy is navigating a "soft landing" in early 2026, with inflation cooling toward 3% and interest rates holding at 3.75%. While manufacturing and services show resilience with rising PMI figures, the labor market has loosened, pushing unemployment to 5.2%. Modest GDP growth persists despite construction sector headwinds and evolving global trade tariff pressures. 

Top Market Movers: Among top gainers on FTSE 100 index, St. James’s Place PLC (LSE: STJ) witnessed a rise of 5.76% followed by Hiscox LD (LSE: HSX) which gained around 5.75%. 

Commodity Update: The Japanese yen hovered near a two-week low after reports that Prime Minister Sanae Takaichi expressed reservations to the central bank governor regarding additional rate hikes. Meanwhile, strength in the Chinese yuan added pressure on the U.S. dollar. Gold rose 0.49% to USD 5,201.70, silver gained 2.44% to USD 89.63, and copper advanced 0.39% to USD 13,281.90. Brent crude climbed 0.64% to USD 71.22 amid persistent U.S.–Iran supply concerns.    

Our Stance: In February 2026, the UK economy shows fragile stability with a 0.3% Q1 growth forecast. Inflation is cooling toward 3%, yet high costs and a loosening labour market have pushed unemployment to a five-year high of 5.2%. 

FTSE 100: The FTSE 100  is trading 92.29 points higher at 10,772.88, continuing to remain firmly above the pivotal 9,800 zone that anchors the broader structure. The index is positioned above both its 21-day and 50-day Simple Moving Averages, preserving the prevailing upward trajectory while allowing room for near-term consolidation. The RSI at 74.95 indicates momentum remains elevated, though slightly moderated from recent peaks. On the downside, the 9,950–10,400 range acts as an important cushion, while the 10,800–11,000 band marks the next area of upside focus. 

Source: Charts by EODHD/Others