Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.38% on 22 December 2025. 

Macro Update: The UK economy faces significant challenges as it enters 2026, marked by a 0.1% Q3 2025 GDP growth, an unemployment rate hitting a four-year high of 5.1% in October, and inflation at 3.2% in November. In response to this private sector downturn, the Bank of England cut interest rates to 3.75% on December 18, 2025, hoping to stimulate growth. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 3.16% followed by Endeavour Mining PLC (LSE: EDV) which gained around 2.71%. 

Commodity Update: The yen hovered near a record low against the euro on Monday after Bank of Japan Governor Kazuo Ueda maintained a cautious tone despite Friday’s rate hike. Rising geopolitical tensions boosted safe-haven demand, with gold climbing 0.71% to $4,418.65 and silver jumping 2.36% to $69.08. Copper rose 0.72% to USD 11,959.00, while Brent crude edged up 0.073% to USD 60.91 after a U.S. tanker interception. 

Our Stance: The UK's economic stance in late 2025 is one of fragile stabilization amid weakening demand. While the Bank of England cut interest rates to 3.75% on December 18 to combat stagnation, the outlook remains precarious. Despite falling to 3.2%, persistent inflation and a record-high tax burden continue to squeeze households, keeping growth forecasts for 2026 subdued at approximately 1.0–1.4%. 

FTSE 100: The FTSE slipped 38.03 points to trade at 9,859.39 but continues to hold well above the key support zone near 9,200, maintaining a stable broader structure. The 21-day SMA at 9,705.93 and the 50-day SMA at 9,663.30 reflect a positive bias, indicating room for short-term consolidation. The RSI remains elevated and continues to strengthen, highlighting resilient momentum. Immediate support is seen near 8,950, while resistance levels are placed at 10,000 and 10,120. 

Source - EODHD/Others 

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!