FTSE Extends Gains Despite Soft UK Outlook

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 1.02% on 18 February 2026. 

Macro Update: The UK economy faces a sluggish 2026, with GDP growth forecasts downgraded to 0.9% amid a weakening labor market and 5.2% unemployment. While inflation fell to 3.0% in January, boosting the FTSE 100 on rate-cut hopes, the Bank of England remains cautious, maintaining interest rates at 3.75% for now. 

Top Market Movers: Among top gainers on FTSE 100 index, Antofagasta PLC (LSE: ANTO) witnessed a rise of 4.59% followed by Airtel Africa PLC (LSE: AAF) which gained around 4.04%. 

Commodity Update: The U.S. dollar steadied on Wednesday as geopolitical concerns kept investors cautious ahead of the Federal Reserve meeting minutes, which may offer clarity on the timing of future rate adjustments. Precious and base metals advanced, with gold rising 0.54% to USD 4,933.10, silver up 0.68% to USD 74.04, and copper gaining 0.75% to USD 12,687.40. Brent crude edged 0.04% lower to USD 67.39 amid easing supply concerns.    

Our Stance: The UK faces a sluggish 2026 as GDP growth forecasts dip to 0.9%. While inflation slowed to 3.0%, sparking record FTSE 100 highs on rate-cut hopes, a softening labor market and 5.2% unemployment keep the Bank of England's policy stance cautious. 

FTSE 100: FTSE 100 gained 93.93 points to trade at 10,650.10, continuing to hold well above the 9,800 support region that anchors the broader structure. The 21-day and 50-day Simple Moving Averages remain positioned beneath current levels, maintaining the prevailing upward tone while allowing scope for near-term consolidation. The RSI stands at 74.18, indicating elevated momentum conditions. In trading terms, immediate support is placed around 9,950–10,400, while the 10,800–11,000 band marks the next resistance zone to monitor. 

Source: Charts by EODHD/Others