FTSE 100 Steady Amid Cooling UK Growth

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.13% on 23 December 2025. 

Macro Update: In late 2025, UK GDP growth has cooled to 0.1% as manufacturing declines. Inflation dropped to 3.2% in November, prompting the Bank of England to cut interest rates to 3.75%. Unemployment rose to 5.1% amid fiscal tightening 

Top Market Movers: Among top gainers on FTSE 100 index, Metlen Energy & Metals PLC  (LSE: MTLN) witnessed a rise of 1.36% followed by Schroders PLC (LSE: SDR) which gained around 1.20%. 

Commodity Update: The U.S. dollar moved toward its weakest annual performance in over 20 years as investors bet the Federal Reserve could cut rates further in 2026, while some global peers eye hikes. Commodities strengthened, with gold rising 0.12% to USD 4,513.15, silver up 1.28% to USD 72.05, and copper gaining 0.40% to USD 12,101. Brent crude edged 0.10% higher to USD 62.42, supported by U.S.–Venezuela tensions and resilient U.S. growth, despite thin holiday trading volumes. 

Our Stance: Our stance on the 2025 UK macro outlook reflects a cautious pivot: while cooling growth and 3.2% inflation justified December's rate cut to 3.75%, rising 5.1% unemployment and persistent manufacturing declines signal significant headwinds for 2026’s recovery. 

FTSE 100: The FTSE edged up by 0.79 points to trade at 9,890.01, continuing to hold comfortably above the key support zone near 9,200 and preserving a stable broader structure. The 21-day SMA at 9,736.47 and the 50-day SMA at 9,681.47 point to a positive underlying bias, suggesting scope for short-term consolidation without disrupting the trend. Momentum remains resilient, with the RSI staying elevated and showing further improvement. Immediate support is placed near 8,950, while resistance levels are positioned at 10,000 and 10,120, which remain key hurdles for the next upside phase. 

Source - EODHD/Others