FTSE Edges Higher But Is The Rally Losing Steam

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.99% on 17 March 2026. 

Macro Update: UK economic growth flatlined at the start of 2026 as a geopolitical energy shock pushed unemployment higher. Though manufacturing remained resilient, rising interest rates and inflation fears weakened consumer confidence, leaving policymakers navigating a fragile and low-growth environment. 

Top Market Movers: Among top gainers on FTSE 100 index, Standard Chartred PLC (LSE: STAN) witnessed a rise of 3.68% followed by BT Group PLC (LSE: BT.A) which gained around 2.80%. 

Commodity Update: The U.S. dollar remained near a 10-month high on Monday as global markets turned cautious ahead of several key central bank meetings this week. Policymakers from the U.S. Federal Reserve, European Central Bank, Bank of England and Bank of Japan are scheduled to decide on interest rates amid rising geopolitical tensions linked to the U.S.–Israel conflict with Iran. Meanwhile, gold fell 1.10% to USD 5,006.60, silver dropped 2.27% to USD 79.49, copper eased 0.43%, while Brent crude rose 1.24% to USD 104.42. 

Our Stance: The UK economy remains stuck in neutral, with growth stalled as unemployment ticks up and fresh energy shocks take hold. Manufacturing provides a solitary bright spot, but fragile consumer confidence and persistent inflation risks keep the Bank of England anchored to a cautious, high-rate policy. 

FTSE 100: The FTSE 100 Index is trading near 10,384.36, gaining about 66.67 points (0.65%) in the session. Technically, the index is positioned below its 20-day moving average at 10,537.18, but continues to hold above the 50-day moving average at 10,367.72, indicating mixed short-term momentum. The RSI at 48.01 reflects neutral momentum following the recent pullback from higher levels. On the downside, the 10,200–10,000 zone may act as near-term support, while 10,500–10,700 could act as a resistance band that may influence the index’s near-term direction. 

Source: Charts by EODHD/Others