Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 1.17% on 20 January 2026. 

Macro Update: As of January 20, 2026, the UK faces a softening labour market with unemployment at 5.1%. While November’s 0.3% GDP growth beat expectations, high interest rates at 3.75% and geopolitical trade tensions remain significant risks to the modest 2026 economic outlook. 

Top Market Movers: Among top gainers on FTSE 100 index, Informa PLC (LSE: INF) witnessed a rise of 2.75% followed by Endeavour Mining PLC (LSE: EDV) which gained around 1.61%. 

Commodity Update: On Tuesday, the U.S. dollar stayed under pressure while U.S. Treasury yields climbed to their highest level in over four months, as renewed trade-war concerns weighed on risk sentiment and triggered selling in U.S. assets. Gold advanced 1.72% to USD 4,673.50 and silver gained 4.85% to USD 92.83, while copper slipped 0.72% to USD 12,885.20. Brent crude edged up 0.30% to USD 64.13, supported by stronger-than-expected economic growth data from China and ongoing focus on President Donald Trump’s tariff-related remarks.  

Our Stance: The UK's economic foundation is struggling, marked by slow expansion and a deteriorating job sector, even as price increases cool down. The recent interest rate cut by the Bank of England highlights these vulnerabilities, implying a need for cautious investment strategies. Future attention should concentrate on upcoming policy shifts and the dual threats of increasing national debt and a possibly sharper recession. 

FTSE 100: The FTSE 100 declined 127.09 points to trade at 10,068.26 yet continues to hold above the key support zone near 9,800, preserving a stable broader structure. The 21-day and 50-day Simple Moving Averages remain below current levels, offering underlying support and allowing room for near-term consolidation. Momentum has eased, with the RSI showing waning strength. Immediate support is seen around 8,950, while upside resistance is placed near 10,250 and 10,400.  

Source: Charts by REFENITIVD 

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