FTSE 100 Rises as Commodity Strength Lifts Sentiment Amid UK Stagflation Concerns

index Update: The FTSE 100 index, a key benchmark index for the London Stock Exchange, was trading rose around 2.22% on 06 May 2026. 

Macro Update: The UK economy faces Stagflation risks as Inflation rose to 3.3% in March, driven by energy shocks. While February GDP grew 0.5%, the Bank of England held rates at 3.75% amid a slowing labour market. Higher borrowing costs and squeezed wages are currently cooling retail sales and Manufacturing momentum. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 9.34% followed by Antofagasta PLC (LSE: ANTO) witnessed a rise of 8.73%. 

Commodity Update: Gold prices advanced in Asian trading on Wednesday as a weaker U.S. dollar and softer Crude Oil prices supported safe-haven Demand. Gold climbed 1.94% to USD 4,657.00 per ounce, while silver surged 3.27% to USD 75.98 per ounce. Copper also gained 1.45% to USD 13,285.90 per ton, reflecting improved risk appetite in industrial metals. Meanwhile, Brent Crude declined 1.38% to USD 108.35 per barrel after optimism grew that Middle East oil supplies could stabilize amid potential progress toward a U.S.-brokered Iran peace agreement. 

Our Stance: The UK maintains a restrictive monetary stance, with the Bank of England holding rates at 3.75% to combat 3.3% inflation. Fiscal Policy remains tight as the government balances high National Debt against stagnant growth and rising energy-driven price pressures. 

FTSE 100: The FTSE 100 Index is trading near 10,444.10, up 1.74% in the session, and is holding above its 50-day SMA around 10,380.39, indicating an improving near-term structure. Price action reflects a rebound after recent consolidation, with the index attempting to regain momentum near recent swing highs. The 14-day RSI near 52.74 has crossed above its signal line and moved back into neutral territory, suggesting stabilizing momentum conditions. Immediate support is placed around 10,250–10,100, while resistance is seen near 10,600–10,750. A sustained move above the upper range could support further upside momentum in the coming sessions.