FTSE Holds Gains As Oil Risks Rise Amid Weak UK Growth

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.30% on 10 April 2026. 

Macro Update: UK growth is currently stagnant as high energy costs and geopolitical tension weigh on activity. While inflation has cooled to 3%, the Bank of England remains cautious, holding rates at 3.75% amid sticky services prices. Meanwhile, the retail sector faces a sharp downturn, contrasted by major new battery gigafactory investments. 

Top Market Movers: Among top gainers on FTSE 100 index, Convatec Group PLC (LSE: CTEC) witnessed a rise of 3.48% followed by Burberry Group PLC (LSE: BRBY) witnessed a rise of 2.84%. 

Commodity Update: On Friday, the U.S. dollar was set for its biggest weekly decline since January as global currencies strengthened on hopes that the Gulf ceasefire would hold and oil shipments would resume. However, caution remained ahead of key talks scheduled this weekend. Gold declined 0.96% to USD 4,771.30 per ounce, while silver dropped 1.11% to USD 75.58. Copper edged up 0.09% to USD 12,707.00. Brent crude rose 0.87% to USD 96.75 amid continued concerns over Saudi energy infrastructure and the Strait of Hormuz. 

Our Stance: The UK economy is navigating a "low-growth trap" with GDP stagnating and retail sales plunging. While inflation has eased to 3%, the Bank of England maintains a restrictive 3.75% rate to combat sticky services costs, balancing high borrowing pain against necessary price stability. 

FTSE 100: The FTSE 100 is trading near 10,630.67, up 0.26% in the session, and remains above both its 21-day moving average near 10,244.36 and 50-day moving average near 10,389.53, indicating that the broader structure remains constructive. Recent price action reflects a continued recovery after the March decline, while the RSI near 62.12 suggests improving momentum. On the downside, support is placed around 10,350.00–10,250.00. On the upside, resistance is located near 10,800.00, followed by the 10,900.00 region. 

Source: Charts by EODHD/Others