FTSE Edges Higher Amid Fragile UK Growth

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.17% on 16 February 2026. 

Macro Update: The UK economy remains fragile, with GDP growth stalling at 0.1% alongside a Bank of England rate hold at 3.75%. While manufacturing is rebounding, stagnant services and rising unemployment projections to 5.4% signal ongoing macroeconomic pressure through 2026. 

Top Market Movers: Among top gainers on FTSE 100 index, Natwest Group PLC (LSE: NWG) witnessed a rise of 4.10% followed by Babcock International Group PLC (LSE: BAB) which gained around 3.39%. 

Commodity Update: The Japanese yen eased after last week’s rally, while the U.S. dollar held firm as softer inflation data strengthened expectations of Federal Reserve rate cuts later this year. Thin liquidity prevailed with U.S., China, Taiwan and South Korea markets shut for holidays. Gold fell 0.57% to USD 5,017.60, silver slipped 2.90%, and copper declined 0.54%, while Brent crude edged up 0.20% amid U.S.–Iran supply concerns and weak Japan growth data.    

Our Stance: The UK government maintains that it has the "right economic plan" to build a stronger economy despite "subdued" 0.1% growth. Chancellor Rachel Reeves emphasizes cutting the cost of living and national debt, while Prime Minister Keir Starmer promises 2026 will be a "turning point" for national renewal. 

FTSE 100: The FTSE 100 advanced 35.29 points to trade at 10,481.64, maintaining levels comfortably above the key 9,800 support area that anchors the broader structure. The 21-day and 50-day SMAs remain below current prices, reinforcing the prevailing upward bias while leaving room for near-term consolidation. Momentum appears strong, with the RSI at 77.50, indicating stretched conditions. Immediate support is seen around 9,800–9,950, while the 10,600–10,700 region represents the next upside zone to watch. 

Source: Charts by EODHD/Others