Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.08% on 13 January 2026. 

Macro Update: The UK economy is experiencing slow growth amidst falling inflation and a weakening labour market. The Bank of England recently cut interest rates to 3.75% as inflation eased to 3.2% in November 2025. GDP growth slowed in Q3 2025, and unemployment has risen to 5.1%. The IMF forecasts modest growth for 2026 as the country navigates a challenging economic landscape with rising government debt. 

Top Market Movers: Among top gainers on FTSE 100 index, Whitebread PLC (LSE: WTB) witnessed a rise of 5.11% followed by Pershing Square Holdings Ltd (LSE: PSH) which gained around 2.20%. 

Commodity Update: The U.S. dollar stayed under pressure on Tuesday after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, raising concerns over central bank independence and confidence in U.S. assets. Gold slipped 0.19% to USD 4,608.30, while silver rose 0.85% to USD 85.78 and copper advanced 0.94% to USD 13,219.20. Brent crude oil remained higher, trading up at USD 63.87, after surging to seven-week highs, supported by concerns that Iran’s oil exports could decline amid heightened geopolitical tensions. 

Our Stance: Our stance is that the UK economy faces significant headwinds, characterized by tepid growth and a softening labor market, despite easing inflation. The recent interest rate cut by the Bank of England reflects this challenging environment. Investors should remain cautious, monitoring for further policy responses and the potential for a more pronounced economic slowdown as government debt levels continue to rise. 

FTSE 100: The FTSE 100 eased by 1.59 points to trade at 10,139.11, while continuing to hold comfortably above the key support zone near 9,500, preserving a stable broader structure. The 21-day and 50-day Simple Moving Averages remain supportive, indicating a positive underlying tone with scope for short-term consolidation. Momentum conditions stay healthy, supported by an improving RSI. Immediate support is seen around 8,950, while upside resistance is placed near 10,200 and 10,350. 

Source: Charts by REFENITIVD

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