UK Markets Steady As Growth Cools And Rates Ease

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.33% on 14 January 2026. 

Macro Update: In January 2026, the UK economy faces anaemic growth, with GDP expansion projected at just 1.0–1.2% for the year. Inflation fell to 3.2% in late 2025, prompting the Bank of England to cut interest rates to 3.75%. However, a softening labor market—with unemployment at 5.1%—and high taxes from the November budget continue to dampen consumer spending. 

Top Market Movers: Among top gainers on FTSE 100 index, Endeavour Minin PLC (LSE: EDV) witnessed a rise of 3.31% followed by AstraZeneca PLC (LSE: AZN) which gained around 2.70%. 

Commodity Update: The U.S. dollar advanced to near a one-month high in early Asian trade after U.S. CPI data broadly met expectations, reinforcing views that the Federal Reserve will keep rates unchanged this month despite political pressure. Gold climbed 0.63% to USD 4,628.20, silver jumped 3.84% to USD 89.68, and copper rose 1.56% to USD 13,388.20. Brent crude edged down 0.14% to USD 65.38, easing after four sessions of gains as Venezuela resumed exports, while concerns over potential Iranian supply disruptions amid civil unrest continued to support prices. 

Our Stance: The UK economy confronts several structural challenges, including sluggish growth and weakening employment conditions, even as price pressures subside. The Bank of England’s recent decision to reduce interest rates signals underlying economic fragility. Investors are advised to adopt a guarded stance, closely tracking policy developments and risks related to expanding public debt and a potential sharper downturn. 

FTSE 100: The FTSE 100 advanced 23.74 points to 10,161.09, continuing to trade comfortably above the key support zone near 9,800, which helps preserve a stable broader structure. The 21-day and 50-day Simple Moving Averages remain positioned below current levels, providing underlying support and allowing room for near-term consolidation. Momentum conditions remain steady, as reflected by an improving RSI. Immediate support is placed around 8,950, while upside resistance is seen near 10,250 and 10,400. 

Source: Charts by REFENITIVD