Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.13% on 05 January 2026. 

Macro Update: UK economic growth is currently stalling, with GDP expanding just 0.1% as productivity remains weak. Unemployment has risen to 5.1%. While inflation has cooled to 3.2%, the Bank of England maintains a cautious 3.75% base rate 

Top Market Movers: Among top gainers on FTSE 100 index, Babcock International Group PLC (LSE: BAB) witnessed a rise of 5.42% followed by BAE System PLC (LSE: BA.) which gained around 5.07%. 

Commodity Update: The U.S. dollar began the first full trading week of the new year on a firm note, hitting a three-and-a-half-week high against the euro and strengthening versus sterling, while overall moves stayed modest. Sentiment was influenced by the U.S. capture of Nicolas Maduro. Gold surged 2.09% to USD 4,420.10, silver jumped 6.27% to USD 75.44, and copper climbed 2.62% to USD 12,844.00. Brent crude rose 0.30% to USD 60.90, as markets assessed Venezuela developments and OPEC+ keeping output unchanged amid geopolitical tensions. 

Our Stance: In 2026, the UK faces persistent stagnation with GDP growth near zero. While the Bank of England cut rates to 3.75% to spur activity, rising unemployment at 5.1% and 3.2% inflation create a difficult "higher-for-longer" fiscal environment. 

FTSE 100: The FTSE advanced 30.11 points to trade at 9,981.25, remaining comfortably above the key support zone near 9,500 and maintaining a stable broader structure. The 21-day SMA at 9,790.82 and the 50-day SMA at 9,731.77 point to a positive bias, leaving room for short-term consolidation. The RSI remains elevated and continues to strengthen, indicating firm momentum. Immediate support is seen near 8,950, while resistance is placed around 10,000 and 10,120. 

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Source: Charts by TradingView 

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