FTSE 100 Index Holds Gains Amid War-Driven Inflation & Range-Bound Momentum

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 1.08% on 30 April 2026. 

Macro Update: The UK economy faces a "war-shock" slowdown. While early 2026 saw surprise growth, the Iran conflict has pushed inflation to 3.3% via surging energy costs. With GDP forecasts slashed to 0.8% and unemployment rising, the Bank of England is holding rates at 3.75% to balance recession risks against persistent price pressures. 

Top Market Movers: Among top gainers on FTSE 100 index, United Utilities Group PLC (LSE: UU.) witnessed a rise of 11.78% followed by Severn Trent PLC (LSE: SVT) witnessed a rise of 8.01%. 

Commodity Update: The U.S. dollar hovered near a two-week high on Thursday as hawkish remarks from Federal Reserve officials pushed bond yields to a one-month peak. The Japanese yen weakened past 160 per dollar, increasing the likelihood of potential intervention. Gold rose 0.28% to USD 4,574.60, silver gained 0.86% to USD 72.70, and copper advanced 0.45% to USD 13,053.00. Brent crude declined 1.91% to USD 119.94 amid concerns over prolonged Middle East supply disruptions due to stalled U.S.-Iran tensions. 

Our Stance: The UK maintains a cautious, defensive stance. The Bank of England is holding interest rates at 3.75% to curb war-driven inflation, while the government manages growth downgrades and geopolitical friction through diplomatic outreach to the US to protect trade. 

FTSE 100: The FTSE 100 Index is trading near 10,312.90 and remains below its 50-day SMA around 10,411, indicating a slightly soft near-term structure. Price action shows a pullback after a recent rebound, with the index facing resistance near the upper range. The broader trend reflects consolidation rather than a clear directional move. The 14-day RSI near 45.55 is below its signal line, pointing to easing momentum. Immediate support is placed around 10,100–10,000, while resistance is seen near 10,500–10,700. A breakout on either side of this range may guide the next directional move. 

Source - Refinitiv