FTSE Retreats As Investors Await OBR Signals

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 2.70% on 03 march 2026. 

Macro Update: As of March 2026, the UK faces subdued 1.3% annual growth and 5.2% unemployment. While inflation cooled to 3.0%, the Bank of England maintains a 3.75% base rate amid energy price volatility. The FTSE 100 recently hit records but remains fragile ahead of today’s Spring Statement and OBR economic forecasts. 

Top Market Movers: Among top gainers on FTSE 100 index, SMITH & NEPHEW PLC (LSE: SN.) witnessed a rise of 3.42% followed by Hikma Pharmaceuticals PLC (LSE: HIK) which gained around 0.56%. 

Commodity Update: Gold extended its advance in Asian trade, marking a fourth consecutive gain as escalating Middle East tensions supported safe-haven demand, though a firmer U.S. dollar limited sharper upside. Gold climbed 1.32% to USD 5,382.40, silver rose 1.68% to USD 90.35, and copper added 1.01% to USD 13,242.00. Brent crude advanced 2.00% to USD 79.28, following a prior 7% surge amid Strait of Hormuz supply concerns.    

Our Stance: As of March 3, 2026, the UK government’s stance emphasizes stability and long-term planning amid global uncertainty. Chancellor Rachel Reeves insists the "right economic plan" is in place, prioritizing public finance security and infrastructure investment over short-term policy changes. 

FTSE 100: The FTSE 100 is trading 111.88 points lower at 10,798.67, yet remains well above the key 10,500 support zone that underpins the broader structure. The index continues to hold above its 21-day and 50-day Simple Moving Averages, maintaining a constructive bias while leaving scope for short-term consolidation. The RSI at 68.51 signals elevated momentum, though it has moderated from recent highs. Immediate support is placed in the 9,950–10,400 band, while resistance is seen between 11,200–11,500. 

Source: Charts by EODHD/Others