FTSE 100 Holds Firm As Growth Signals Improve

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.18 % on 26 February 2026. 

Macro Update: In February 2026, the UK economy showed a "solid start" as private sector output hit a 22-month high. However, overall GDP growth remains modest at 0.1%. Inflation fell to 3.0% in January, prompting the Bank of England to maintain interest rates at 3.75% while signaling potential spring cuts. 

Top Market Movers: Among top gainers on FTSE 100 index, Howden Joinery PLC (LSE: HWDN) witnessed a rise of 7.48% followed by Rolls Royce Holdings PLC (LSE: RR.) which gained around 6.37%. 

Commodity Update: The U.S. dollar traded softer in early Asian hours on Thursday as upbeat earnings from Nvidia supported broader risk sentiment, while markets awaited clarity on fresh U.S. import tariffs. Precious metals eased, with gold declining 0.52% to USD 5,199.00, silver slipping 2.54% to USD 88.68, and copper down 0.38% to USD 13,279.00. Brent crude edged up 0.30% to USD 71.12, holding near seven-month highs despite rising U.S. inventories.    

Our Stance: In February 2026, UK private sector growth hit a 22-month high, led by manufacturing and services. While inflation dipped to 3.0%, the Bank of England held rates at 3.75%, balancing modest 0.1% GDP growth against a cautious labor market and upcoming Spring Budget fiscal targets. 

FTSE 100: The FTSE 100  is up 11.73 points at 10,818.14, maintaining its position well above the critical 9,800 support area that underpins the broader structure. The index continues to trade above its 21-day and 50-day Simple Moving Averages, sustaining the ongoing upward bias while leaving scope for short-term consolidation. The RSI stands at 76.41, reflecting elevated momentum conditions, albeit slightly eased from recent highs. Immediate support is seen within the 9,950–10,400 range, whereas the 10,900–11,000 zone represents the next upside threshold. 

Source: Charts by EODHD/Others