Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.07% on 23 January 2026. 

Macro Update: UK inflation unexpectedly increased to 3.4% in December, primarily fueled by airfare and tobacco costs, with analysts considering this a likely transient spike. Consequently, the Bank of England is anticipated to maintain its current interest rate at the upcoming February meeting, with potential reductions delayed until later in 2026 as inflationary trends moderate. Concurrently, public sector borrowing saw a significant decline last month, and the unemployment rate held steady at 5.1%, indicating a stable labour market. 

Top Market Movers: Among top gainers on FTSE 100 index, ST. James’s Place (LSE: STJ) witnessed a rise of 3.42% followed by Hiscox Ltd (LSE: HSX) which gained around 2.69%. 

Commodity Update: Commodity Update: The Japanese yen strengthened sharply, pressuring the U.S. dollar across global markets, as rate checks heightened investor caution over the possibility of the first coordinated U.S.–Japan currency intervention in 15 years. Gold climbed 1.79% to USD 5,106.80, silver jumped 6.31% to USD 107.73, and copper edged up 0.06% to USD 13,178.60. Brent crude rose 0.18% to USD 66.00, following a gain of over 2.00% in the previous session.  

Our Stance: We maintain a prudent outlook given sustained inflationary pressures and easing labor momentum. Although monetary easing is projected for late 2026, present policy is necessarily focused on navigating near-term economic headwinds, with the recent inflationary uptick likely postponing any imminent intervention. 

FTSE 100: The FTSE 100 gained 21.82 points to trade at 10,171.87, continuing to hold above the key support zone near 9,800 and maintaining a stable broader structure. The 21-day and 50-day Simple Moving Averages remain positioned below current levels, providing underlying support and leaving scope for near-term consolidation. Momentum is improving, as reflected by a strengthening RSI. Immediate support is placed around 8,950, while upside resistance is seen near 10,250 and 10,400. 

Source: Charts by REFENITIV

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