FTSE 100 Slips As Stagflation Risks Rise And Oil Clouds Outlook

index Update: The FTSE 100 index, a key benchmark index for the London Stock Exchange, was trading declined around 0.73% on 29 April 2026. 

Macro Update: The UK economy faces Stagflation, with 2026 GDP growth forecasts slashed to 0.8% due to Middle East tensions. Inflation rose to 3.3%, pushing oil prices higher and delaying Interest Rate cuts. While services remain resilient, rising Unemployment and energy costs are straining households, pressuring the Bank of England to maintain high rates. 

Top Market Movers: Among top gainers on FTSE 100 index, DCC PLC (LSE: DCC) witnessed a rise of 14.22% followed by Croda International PLC (LSE: CRDA) witnessed a rise of 1.30%. 

Commodity Update: The dollar firmed on Tuesday as investors assessed a deadlock in U.S.–Iran talks alongside key Central Bank rate decisions this week. Gold slipped 0.04% to 4606.60, while silver rose 0.61% to 73.66 and copper gained 0.71% to 13124.70. Brent Crude fell 0.60% to 110.65 as markets weighed the United Arab Emirates’ exit from the OPEC producer group, though persistent geopolitical tensions and the Strait of Hormuz closure limited deeper losses. 

Our Stance: The UK government maintains a cautious fiscal stance, prioritising Inflation control and stability over aggressive stimulus. Focus remains on supporting the Bank of England’s restrictive rates, managing rising Debt costs, and increasing defence spending amidst heightened geopolitical risks and energy market Volatility. 

FTSE 100: The FTSE 100 index is trading near 10,257.80, down 48.00 points (-0.47%), and remains below its 50-day SMA (~10,419.53), indicating a slightly softer near-term structure. Price action reflects a pullback after a recent rebound, with the index facing some pressure near higher levels. The 14-day RSI near 41.50 has eased and remains below its signal line, pointing to moderating momentum. Immediate support is placed around 10,100–10,000, while resistance is seen near 10,400–10,600. A sustained move above resistance could support further upside, while continued consolidation may persist otherwise.