UK Equities Stable as Macro Headwinds Persist

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.01% on 12 January 2026. 

Macro Update: UK macro news on January 12, 2026, focuses on labor market weakness, with employers cutting hiring in December 2025 at the sharpest rate since August due to rising costs. The Bank of England cut the interest rate to 3.75% on December 18, 2025, amidst slowing inflation, which hit 3.2% in November, but concerns remain about persistent wage growth and weak GDP. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillio PLC (LSE: FRES) witnessed a rise of 7.30% followed by Endeavour Mining (LSE: EDV) which gained around 3.03%. 

Commodity Update: The U.S. dollar eased from its strongest level in one month on Monday after U.S. prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell, intensifying tensions with the Trump administration. Gold rose 2.00 % to USD 4,590.96, silver surged 4.93 % to USD 83.26, and copper climbed 0.97 % to USD 13,106.35. Brent crude was slightly down 0.01 % at USD 63.29 amid Iran supply concerns. 

Our Stance: On January 12, 2026, the UK economy shows signs of cooling as hiring fell at its sharpest rate since August due to rising costs. While the Bank of England recently cut interest rates to 3.75% and inflation has eased to 3.2%, stagnant GDP growth and weak business confidence suggest a fragile outlook for the coming year. 

FTSE 100: The FTSE 100 advanced 41.17 points to trade at 10,085.86, remaining comfortably above the key support zone near 9,500 and maintaining a constructive broader structure. The 21-day and 50-day Simple Moving Averages continue to provide underlying support, reinforcing a positive bias while allowing room for short-term consolidation. Momentum remains firm, as reflected by a strengthening RSI. Immediate support is placed around 8,950, while resistance levels are located near 10,200 and 10,350. 

Source: Charts by REFENITIVD