FTSE 100 turns Green Ahead of US GDP data:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.03% on 23 December 2025.  

Macro Update: UK economic growth has been weak and uneven, with the Office for National Statistics confirming that GDP expanded by just 0.1% in the third quarter of 2025, highlighting persistent stagnation in output after earlier downward revisions to second‑quarter figures and disruptions such as a cyberattack on Jaguar Land Rover weighing on manufacturing activity. Although there have been occasional monthly upticks in GDP earlier in 2025, overall momentum remains fragile and below what many economists had hoped, contributing to expectations that policymakers may continue to support the economy with monetary easing if inflation keeps declining. Sterling, however, has recently strengthened, reaching a multi‑week high versus the US dollar as markets reacted positively to some resilient economic data and reduced expectations of aggressive future rate cuts by the Bank of England. 

Top Market Movers: Among top gainers on FTSE 100 index, Melten Energy & Metals PLC (LSE: MLTN) witnessed a rise of 3.64% followed by Mondi PLC (LSE: MNDI) which gained around 1.22%. 

Commodity Update: The Japanese yen strengthened on Tuesday amid broad U.S. dollar weakness after authorities issued their strongest warning yet, signalling Tokyo’s readiness to intervene as the currency hovered near recent lows against major peers. Commodities advanced, with gold rising 1.17% to USD 4,521.65, silver up 1.85% to USD 69.77, and copper edging 0.04% higher to USD 11,925.00. Brent crude slipped 0.10% to USD 61.98 after sharp prior-session gains. 

Our Stance: On the policy front, the Bank of England has cut interest rates, aiming to balance slowing growth and easing inflation, which has fallen from previous highs to more moderate levels, though unemployment has risen to multiyear highs. The government, led by Finance Minister Rachel Reeves, has scheduled new economic forecasts from the Office for Budget Responsibility in early 2026 to guide fiscal policy amid ongoing uncertainty, while firms and exporters voice concerns over domestic conditions and trade barriers, especially with the EU, affecting business sentiment and trade performance. 

FTSE 100 

The FTSE 100 rose 4.55 points to trade at 9,870.52, continuing to hold comfortably above the key support zone near 9,200 and preserving a stable broader structure. The 21-day SMA at 9,722.23 and the 50-day SMA at 9,671.79 indicate a positive bias, allowing scope for short-term consolidation. The RSI remains elevated and continues to strengthen, reflecting resilient momentum. Immediate support is placed near 8,950, while resistance is located around 10,000 and 10,120. 

Source - EODHD/Others