Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.60% on 07 January 2026.

Macro Update: The UK economy has a precarious outlook for 2026 with slowing growth, rising unemployment to an 11-year high, and sticky inflation above target, prompting expected further interest rate cuts.

Top Market Movers: Among top gainers on FTSE 100 index, Barratt Redrow PLC (LSE: BTRW) witnessed a rise of 3.01% followed by Persimmon PLC (LSE: PSN) which gained around 2.62%.

Commodity Update: The U.S. dollar traded in a narrow range on Wednesday as investors awaited a batch of key U.S. economic data likely to shape the Federal Reserve’s rate outlook, overshadowing geopolitical concerns. Commodities softened, with gold slipping 0.24% to USD 4,486.10, silver down 0.56% to USD 80.54, and copper easing 0.36%. Brent crude declined 1% to USD 60.11 after comments on potential Venezuelan oil supply boosted supply expectations.

Our Stance: The UK economy experienced continued stagnation in 2026, registering negligible GDP growth. Although the Bank of England cut rates to 3.75% to provide stimulus, the overall fiscal environment remained difficult. A “higher-for-longer” reality prevailed, characterized by elevated unemployment (5.1%) and persistent inflation (3.2%).

FTSE 100: The FTSE 100 eased 23.35 points to trade at 10,099.38, remaining comfortably above the key support zone near 9,500 and maintaining a stable broader structure. The 21-day SMA at 9,830.94 and the 50-day SMA at 9,752.20 point to a constructive bias, allowing room for short-term consolidation. The RSI stays elevated and continues to improve, reflecting steady underlying momentum. Immediate support is seen near 8,950, while resistance is placed around 10,200 and 10,350.

Source: Charts by REFENITIVD

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!