FTSE 100 Slips As Oil Surges And Growth Concerns Mount

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading decline around 0.37% on 13 April 2026. 

Macro Update: In April 2026, the UK economy faces subdued growth, with GDP forecasts cut to 1.1% amid Middle East tensions. Inflation holds at 3.0%, while unemployment remains at a five-year high of 5.2%. Consequently, the Bank of England has paused rate cuts, maintaining the base rate at 3.75%. 

Top Market Movers: Among top gainers on FTSE 100 index, Admiral Group PLC (LSE: ADM) witnessed a rise of 2.03% followed by Shell PLC (LSE: SHEL) witnessed a rise of 1.65%. 

Commodity Update: U.S. dollar rose to its strongest level in one week during early Asian trade on Monday after peace talks between the United States and Iran collapsed and the U.S. Navy prepared to blockade Iranian ports. Gold declined 0.99% to USD 4,739.80, silver dropped 2.78% to USD 74.35, and copper slipped 0.66% to USD 12,771.00. Meanwhile, Brent crude jumped 7.36% to USD 102.20, moving back above USD 100.00 per barrel again. 

Our Stance: The UK maintains a "cautious wait-and-see" stance. The Bank of England is holding interest rates at 3.75% to suppress 3% inflation, while the OBR has downgraded growth forecasts to 1.1% due to Middle East tensions and high energy costs. 

FTSE 100: The FTSE 100 is trading near 10,560.36, down around 0.38%, and continues to remain above both the 21-day SMA near 10,252.76 and the 50-day SMA near 10,396.70, indicating that the broader upward structure remains intact. However, prices are still below the recent peak near the 10,800 zone, suggesting that near-term momentum has moderated following the earlier rally. The chart continues to show a pattern of higher lows, while the 14-day RSI near 59.23 points to balanced momentum with room for further upside. Immediate support is placed in the 10,250.00–10,000.00 zone, while resistance is seen near the 10,800.00–11,000.00 range. 

Source: Charts by EODHD/Others