FTSE 100 Flat as Inflation Cools and Gold Surges

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.02% on 23 February 2026. 

Macro Update: UK inflation fell to 3.0% in January, prompting calls for Bank of England rate cuts despite a 5.2% unemployment rate. A surprise £ 30.4bn budget surplus offers fiscal relief as the economy faces stagnant growth and global trade tariff pressures. 

Top Market Movers: Among top gainers on FTSE 100 index, JD Sports Fashion PLC (LSE: JD.) witnessed a rise of 5.17% followed by Fresnillo PLC (LSE: FRES) which gained around 4.57%. 

Commodity Update: The U.S. dollar eased in Asian trade on Monday as markets awaited a clearer direction on Washington’s tariff policy. Safe-haven demand strengthened after fresh global tariff announcements and recent U.S. economic data, supporting bullion for a fourth straight session. Gold climbed 1.94% to USD 5,179.50, silver surged 5.90% to USD 87.20, and copper gained 0.46% to USD 12,983.00. Brent crude slipped 1.00% to USD 71.03 amid U.S.-Iran nuclear talk expectations and trade uncertainty.    

Our Stance: The UK government maintains a stance of fiscal discipline and stability to combat persistent inflation and support growth. Chancellor Rachel Reeves prioritizes meeting fiscal rules to lower borrowing costs, while aiming to "kick-start" the economy through strategic investment and planning reforms. 

FTSE 100: The FTSE 100 is trading 3.00 points higher at 10,689.89, holding firmly above the crucial 9,800 support zone that anchors the broader structure. The index continues to remain above its 21-day and 50-day Simple Moving Averages, reinforcing the prevailing upward bias while allowing room for brief consolidation. The RSI stands at 72.17, indicating elevated momentum conditions. Immediate support is seen in the 9,950–10,400 range, while the 10,800–11,000 zone marks the next resistance band to monitor on the upside. 

Source: Charts by EODHD/Others