FTSE Under Pressure — Will Support Levels Hold?

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading decline around 0.67% on 18 March 2026. 

Macro Update: The UK economy faces a fragile recovery in March 2026, with GDP growth at 1.1% and unemployment hitting a five-year high of 5.2%. While inflation eased to 3.0%, Middle East tensions have delayed expected interest rate cuts. Strong retail sales offer hope, but high public debt remains a concern. 

Top Market Movers: Among top gainers on FTSE 100 index, Diploma PLC (LSE: DPLM) witnessed a rise of 19.48% followed by Babcock International Group PLC (LSE: BAB) which gained around 2.05%. 

Commodity Update: The dollar remained under pressure as mild risk appetite returned ahead of key central bank decisions. Precious metals traded lower, with gold at USD 4,993.30 and silver declining sharply, while copper edged slightly down. Brent crude slipped to USD 102.43 after recent gains, following an unexpected rise in U.S. inventories. Market sentiment stayed cautious, as participants awaited the Federal Reserve’s stance amid persistent inflation concerns linked to elevated oil prices. 

Our Stance: The UK is balancing fragile growth against persistent inflation risks. While retail resilience is a plus, a cooling labor market and high public debt limit fiscal flexibility. The Bank of England remains cautious, delaying rate cuts as global conflicts threaten to spike energy costs and disrupt recovery. 

FTSE 100: The FTSE 100 Index is currently trading near 10,434.40, gaining 30.80 points (0.30%) in the session. Technically, the index remains below its 20-day moving average around 10,525.55 but continues to hold above the 50-day moving average near 10,375.83, reflecting a mixed short-term setup. The recent price action shows consolidation after a gradual upward trend. Momentum indicators remain neutral, with the RSI near 50.38, suggesting balanced momentum. In the near term, 10,200–10,000 may act as a support zone, while 10,600–10,800 could act as a resistance band influencing the index’s direction. 

Source: Charts by EODHD/Others