FTSE 100 Slips As Oil Surge Fuels Inflation Concerns

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.56% on 12 March 2026. 

Macro Update: The UK economy is navigating subdued growth, with the OBR forecasting 1.1% GDP for 2026. While inflation has eased to 3.0%, interest rates remain at 3.75%. Manufacturing and retail show resilience, but the labor market is cooling as unemployment rises and the tax burden hits a historic high. 

Top Market Movers: Among top gainers on FTSE 100 index, Rentokill Initial PLC (LSE: RTO) witnessed a rise of 4.15% followed by The Sage Group (LSE: SGE) which gained around 3.04%. 

Commodity Update: The U.S. dollar remained near its strongest level of the year on Thursday as rising crude oil prices heightened global inflation concerns and strengthened expectations of tighter monetary policy from central banks. Commodity markets showed mixed performance, with gold declining 0.38% to USD 5,158.30, silver dropping 0.65% to USD 85.00, and copper slipping 0.35% to USD 12,966.55. Meanwhile, Brent crude surged 5.69% to USD 97.67 after reports that Iranian explosive boats struck two fuel tankers.    

Our Stance: The UK remains a G7 leader in services and green finance, prioritizing a transition to Net Zero and post-Brexit trade depth. Despite high taxes and cooling labor markets, the stance focuses on fiscal stability to lower inflation and interest rates, aiming to restore long-term productivity and private investment. 

FTSE 100: The FTSE 100 Index is trading around 10,287.38, down 66.39 points (0.64%) in the session. Technically, the index is positioned below its 20-day moving average near 10,561.94 and slightly under the 50-day moving average around 10,349.67, indicating subdued short-term momentum. The RSI near 42.71 also reflects softer momentum conditions. On the downside, 10,000–10,100 may act as a near-term cushion, while 10,500–10,650 could limit upside movement.  

Source: Charts by EODHD/Others