Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.43% on 27 January 2026. 

Macro Update: In January 2026, the UK leads G4 economic growth following a surge in services sector activity, though the Bank of England remains cautious. While November GDP grew by 0.3%, inflation rose to 3.4% in December, complicating potential interest rate cuts. Simultaneously, the labor market is weakening, with unemployment at 5.1% and significant payroll declines reported. 

Top Market Movers: Among top gainers on FTSE 100 index, HSBC Hldgs PLC (LSE: HSBA) witnessed a rise of 2.75% followed by Prudential PLC (LSE: PRU) which gained around 1.93%. 

Commodity Update: The yen held firm on Tuesday after two consecutive sessions of sharp gains, keeping traders alert to the risk of coordinated currency intervention by authorities in the United States and Japan. Yen strength weighed on the dollar, which hovered near a four-month low amid concerns over a potential United States government shutdown and policy uncertainty. Gold declined 0.43% to USD 5,100.80, silver slipped 5.11% to USD 109.70, copper eased 1.56% to USD 13,037.00, while Brent crude fell 0.60% to USD 65.22.  

Our Stance: A prudent outlook is maintained due to ongoing inflation and moderating labor conditions. While monetary easing is anticipated in late 2026, current policy is focused on managing near-term economic challenges, with the recent rise in inflation likely delaying any immediate action. 

FTSE 100: FTSE 100 advanced 37.97 points to 10,186.82, continuing to trade comfortably above the key support zone near 9,800, which helps preserve a stable broader structure. The 21-day and 50-day Simple Moving Averages remain below current levels, offering underlying support and allowing room for near-term consolidation. Momentum has improved, reflected in a firmer RSI. Immediate support is seen around 8,950, while upside resistance is located near 10,250 and 10,400. 

Source: Charts by REFENITIV

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