UK Stocks Firm Amid Cooling Labour Market

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.45% on 17 February 2026. 

Macro Update: The UK unemployment rate rose to 5.2% in the three months to December 2025, reaching its highest level since 2021. According to the Office for National Statistics, 1.88 million people are now unemployed as hiring cools following recent tax hikes, while annual wage growth slowed to 4.2%, fuelling Bank of England rate-cut expectations. 

Top Market Movers: Among top gainers on FTSE 100 index, Relx PLC (LSE: REL) witnessed a rise of 3.82% followed by Airtel Africa PLC (LSE: AAF) which gained around 2.97%. 

Commodity Update: The Japanese yen eased after last week’s rally, while the U.S. dollar held firm as softer inflation data strengthened expectations of Federal Reserve rate cuts later this year. Thin liquidity prevailed with U.S., China, Taiwan and South Korea markets shut for holidays. Gold fell 0.57% to USD 5,017.60, silver slipped 2.90%, and copper declined 0.54%, while Brent crude edged up 0.20% amid U.S.–Iran supply concerns and weak Japan growth data.    

Our Stance: The UK's labour market is cooling, with unemployment hitting 5.2% as businesses scale back hiring. Slowing wage growth, now at 4.2%, provides the Bank of England room to consider interest rate cuts despite recent fiscal pressures on employers. 

FTSE 100: The FTSE 100 rose 31.48 points to 10,505.17, remaining comfortably above the key 9,800 support area that supports the broader technical structure. The 21-day and 50-day Simple Moving Averages continue to track below current prices, reinforcing the underlying upward bias while leaving room for limited consolidation. The RSI at 68.40 reflects firm momentum without entering extreme territory. Immediate support is seen near 9,800–9,950, while resistance is positioned in the 10,600–10,700 zone. 

Source: Charts by EODHD/Others