UK Markets Resilient Despite Inflation Pressures

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.53% on 30 January 2026. 

Macro Update: In January 2026, the UK economy showed resilience with GDP growth around 1.3–1.4%. However, inflation rose to 3.4% in December, and unemployment reached a four-year high of 5.1%. Amid these mixed conditions, economists largely expect the Bank of England to hold the interest rate at 3.75% in February, with cuts anticipated later. 

Top Market Movers: Among top gainers on FTSE 100 index, Experian PLC (LSE: EXPN) witnessed a rise of 3.82% followed by Smith & Nepew PLC (LSE: SN.) which gained around 3.13%. 

Commodity Update: The U.S. dollar was set for a second consecutive weekly decline on Friday, as fresh tariff threats against countries trading with Cuba heightened global uncertainty and weighed on demand for U.S. assets. Commodities weakened, with gold down 1.60% to USD 5,269.00, silver lower by 2.36% to USD 111.65, and copper sliding 2.84% to USD 13,370.00. Meanwhile, Brent crude eased 0.20% to USD 70.50, despite rising Middle East tensions linked to a potential U.S. strike on Iran, a key OPEC producer.  

Our Stance: The UK government's primary goal is to stimulate sustained economic growth. This strategy emphasizes fiscal responsibility alongside supply-side reforms, including changes to planning systems and a long-term Industrial Strategy aimed at attracting private investment and enhancing workforce living standards. 

FTSE 100: The FTSE 100 slipped 16.21 points to trade10,187.97, yet continues to hold comfortably above the key 9,800 support zone, preserving a stable broader structure. The 21-day and 50-day Simple Moving Averages remain below current levels, providing underlying support and leaving room for near-term consolidation. Momentum has improved, with the RSI turning firmer. Immediate support is placed near 8,950, while resistance is seen around 10,250 and 10,400. 

Source: Charts by REFENITIV