Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.40% on 03 February 2026.

Macro Update: The UK economy is set for a guarded 2026, with GDP growth projected at 0.9%. While a manufacturing rebound offers some hope, this is counterbalanced by a softening labour market where unemployment has climbed to 5.1%.

Top Market Movers: Among top gainers on FTSE 100 index, Endeavour Mining PLC (LSE: EDV) witnessed a rise of 5.06% followed by Anglo American PLC (LSE: AAL) which gained around 3.77%.

Commodity Update: The dollar firmed on Monday after precious metals faced sharp losses last week, driven by profit-taking and lingering uncertainty over U.S. monetary policy. Gold slipped 0.19% to USD 4,736.00, while silver rebounded 2.39% to USD 80.84. Copper declined 2.72% to USD 12,804.80. Brent crude fell 3.30% to USD 67.07 as easing U.S –Iran tensions and unchanged OPEC+ output prompted profit booking.  

Our Stance: The UK's fragile recovery faces headwinds from 5.1% unemployment and stubborn inflation, despite a modest 0.9% growth forecast. In response, the Bank of England is holding rates at 3.75%, opting for a cautious "wait-and-see" approach to avoid tipping the economy into stagnation.

FTSE 100: The FTSE 100 edged higher by 4.82 points to trade around 10,346.38, while continuing 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 leaving room for near-term consolidation. Momentum has improved, with the RSI turning firmer. On the downside, immediate support is seen near 8,950, while resistance is located around 10,400 and 10,600.

Source: Charts by EODHD/Others

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!