FTSE 100 Steady as BoE Waits and Commodities Weaken

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.33% on 02 February 2026. 

Macro Update: The UK economy faces a cautious 2026, with the EY ITEM Club forecasting 0.9% GDP growth. While Bank of England rates likely remain at 3.75% this week, a cooling labor market and rising 5.1% unemployment offset a recent manufacturing rebound. 

Top Market Movers: Among top gainers on FTSE 100 index, Beazley PLC (LSE: BEZ) witnessed a rise of 2.65% followed by Intercontinental Hotels Group PLC (LSE: IHG) which gained around 2.63%. 

Commodity Update: The U.S. dollar was set for a second consecutive weekly decline on Friday, as fresh tariff threats against countries trading with Cuba heightened global uncertainty and weighed on demand for U.S. assets. Commodities weakened, with gold down 1.60% to USD 5,269.00, silver lower by 2.36% to USD 111.65, and copper sliding 2.84% to USD 13,370.00. Meanwhile, Brent crude eased 0.20% to USD 70.50, despite rising Middle East tensions linked to a potential U.S. strike on Iran, a key OPEC producer.  

Our Stance: UK macro indicators suggest a fragile recovery. While the EY ITEM Club projects modest 0.9% growth, high 5.1% unemployment and sticky inflation remain hurdles. The Bank of England maintains a "wait-and-see" approach, keeping rates at 3.75% to balance stability against stagnation. 

FTSE 100: The FTSE 100 eased 21.75 points to trade near 10,207.79, yet continued to hold well above the key 9,800 support zone, maintaining a stable broader structure. The 21-day and 50-day Simple Moving Averages remain positioned below current levels, offering underlying support and allowing scope for near-term consolidation. Momentum has shown improvement, with the RSI turning firmer. Immediate support is seen around 8,950, while resistance is placed near 10,250 and 10,400. 

Source: Charts by REFENITIV