FTSE 100 Holds Firm as Commodities Power Higher

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.77% on 29 January 2026. 

Macro UpdateIn January 2026, the UK economy demonstrated resilience with modest GDP growth of approximately 1.3–1.4%. Meanwhile, inflation edged higher to 3.4% in December, and unemployment reached a four-year peak of 5.1%. Given these mixed signals, most economists anticipate the Bank of England will maintain the interest rate at 3.75% in February, with potential cuts expected further ahead. 

Top Market Movers: Among top gainers on FTSE 100 index, 3l Group (LSE: lll) witnessed a rise of 12.23% followed by Antofagasta PLC (LSE: ANTO) which gained around 9.82%. 

Commodity Update: The U.S. dollar stayed weak on Thursday as uncertainty over U.S. economic policy and geopolitical developments continued to weigh on sentiment, despite supportive comments from the White House and European officials. The Federal Reserve’s calmer view on labour market and inflation risks strengthened expectations of interest rates remaining on hold for longer. Gold jumped 3.98% to USD 5,552.36, silver rose 3.56% to USD 117.57, and copper climbed 4.29% to USD 13,688.00, while Brent crude advanced 0.73% to USD 68.90 on Middle East supply concerns.  

Our Stance: The core objective of the UK government is to ignite durable economic expansion. This approach prioritises fiscal responsibility, alongside supply-side measures such as reforming planning systems, and a decade-long Industrial Strategy designed to stimulate private capital and improve the standard of living for the workforce. 

FTSE 100: The FTSE 100 eased modestly in the latest session, yet continues to trade comfortably above the key 9,800 support zone, preserving a stable broader structure. The 21-day and 50-day Simple Moving Averages remain below current levels, providing underlying support and allowing room for near-term consolidation. Momentum has improved, with the RSI holding firm, signalling strengthening trend conditions. Immediate support is located near 9,900, while resistance is seen around 10,250, followed by 10,400. 

Source: Charts by REFENITIV 

Source - EODHD/Others