FTSE 100 Holds Firm Amid Macro Headwinds

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.45% on 09 January 2026.

Macro Update: As of January 2026, economic activity in the UK is cooling. With inflation at 3.2% and unemployment rising to 5.1%, the Bank of England is proceeding cautiously with its rate-cutting cycle, having reduced rates to 3.75% in December, amid persistently weak GDP growth.

Top Market Movers: Among top gainers on FTSE 100 index, Glencore PLC (LSE: GLEN) witnessed a rise of 9.65% followed by Fresnillio PLC (LSE: FRES) which gained around 3.55%.

Commodity Update: The U.S. dollar strengthened in early Asian trade on Friday as investors awaited the latest U.S. jobs report and watched an upcoming Supreme Court ruling on President Donald Trump’s emergency tariff powers. Commodities traded higher, with gold rising 0.34% to USD 4,475.20, silver surging 1.56% to USD 76.32, and copper gaining 0.84% to USD 12,812.00. Brent crude climbed 0.71% to USD 62.43, marking a third weekly gain.

Our Stance: The UK economy remained mired in stagnation throughout 2026, registering only minimal GDP expansion. A prior rate cut by the Bank of England to 3.75% failed to alter the difficult fiscal environment. Instead, a "higher-for-longer" period of elevated unemployment (5.1%) and persistent inflation (3.2%) became the defining features of the economic landscape.

FTSE 100: The FTSE 100 slipped 25.52 points to trade at 10,022.69 yet continued to hold comfortably above the key support zone near 9,500, preserving its broader constructive structure. The 21-day SMA at 9,845.44 and the 50-day SMA at 9,758.55 remain supportive and suggest a positive underlying bias, leaving scope for short-term consolidation. The RSI remains elevated and continues to strengthen, indicating steady momentum. Immediate support lies around 8,950, while resistance is seen near 10,200 and 10,350.

Source: Charts by REFENITIVD 

Source - EODHD/Others