FTSE 100 Pauses As Rate Clarity Takes Center Stage

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.20% on 10 February 2026.

Macro Update: The UK economy faces modest growth, with the Bank of England holding interest rates at 3.75% as inflation nears its 2% target. While the FTSE 100 remains resilient, a softening labour market and 0.9% GDP forecasts signal caution. Markets now look toward the March Budget for fiscal clarity and potential rate cuts.

Top Market Movers: Among top gainers on FTSE 100 index, Croda International PLC (LSE: CRDA) witnessed a rise of 6.90% followed by Coca Cola HBC AG (LSE: CCH) which gained around 3.88%.

Commodity Update: The U.S. dollar extended sharp losses on Tuesday ahead of key economic data expected to influence the interest rate outlook, while the yen held firm after Prime Minister Sanae Takaichi’s decisive election victory. Commodities traded lower, with gold down 0.39% to USD 5,059.25, silver easing 0.73% to USD 81.68, and copper slipping 0.50% to USD 13,146.00. Brent crude declined 0.40% to USD 68.79, though supply concerns lingered amid Strait of Hormuz tensions.   

Our Stance: The UK maintains a cautious neutral stance. The Bank of England is pausing rate cuts at 3.75% to ensure inflation hits its 2% target sustainably. Meanwhile, the government prioritizes fiscal stability and new trade deals to revive sluggish 0.9% GDP growth forecasts.

FTSE 100: The FTSE 100 slipped 26.33 points to trade near 10,347.30, yet continues to hold 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 is firm but moderating, with the RSI at 63.31, indicating easing upside pace. Immediate support is placed near 8,950, while resistance is seen around 10,500 and 10,600.

Source: Charts by EODHD/Others