Is the FTSE 100 Bull Run Just Getting Started?

The FTSE 100 Index continues its historic ascent on January 29, 2026, trading up 0.42% at 10,196.49 as the London market capitalizes on a global "commodities super-cycle" and a weakening US Dollar. With the UK blue-chip index now firmly established above the psychological 10,000 mark, investors are aggressively pivoting toward mining stocks, energy giants, and financial powerhouses. This rally is underpinned by a dramatic surge in gold and copper prices, coupled with a more dovish sentiment from the Federal Reserve that has sent the British Pound climbing above $1.38.

Current market dynamics on January 29, 2026, reveal a robust appetite for UK value stocks, which are outperforming their tech-heavy US counterparts for the third consecutive session. The London Stock Exchange is seeing massive inflows into 3i Group (III), Antofagasta (ANTO), and Glencore (GLEN), as the "debasement trade" gains traction. While the UK economy faces a tightening labor market, the disinflationary trend has allowed the Bank of England to pivot toward a growth-first stance, fueling a renewed interest in UK equities and diversified asset classes.

Source: Kalkine Group

Current Market Dynamics & Asset Classes

  • Economy: The UK GDP is projected to grow 1.4% in 2026. Inflation has cooled to 3.1%, giving the BoE room to cut rates toward a neutral 3.0% target.
  • Asset Classes: Equities: Strong shift toward Value and Cyclicals.
    • Commodities: Gold is at a record $5,509/oz; Copper and Silver are hitting multi-year peaks.
    • Currency: GBP/USD is trending bullish at 1.3872 as the USD softens.
    • Bonds: 10-year Gilt yields are stabilizing near 4.0% as rate-cut expectations solidify.

Sector Performance: Green vs. Red (Jan 29, 2026)

Source: Market Data

Top Gainers & Key Reasons

  1. 3i Group (III): +10.04% - Massive jumps following stellar private equity deal realizations and a 90% "Buy" rating from analysts.
  2. Antofagasta (ANTO): +6.01% - Benefiting from five-year low net cash costs and a massive tailwind from gold by-product credits.
  3. Endeavour Mining (EDV): +5.17% - Rallying on the back of gold hitting $5,500/oz and strong deleveraging progress.
  4. Anglo American (AAL): +3.39% - Direct beneficiary of the global copper supply crunch and record-breaking base metal prices.
  5. Glencore (GLEN): +2.91% - Marketing arm is hitting the top end of guidance; copper production back on track.

Top Losers & Key Reasons

  1. Ashtead Group (AHT): -0.45% - Weakness in US construction equipment demand forecasts.
  2. Sage Group (SGE): -1.20% - Sector-wide rotation away from high-multiple software stocks.
  3. Auto Trader (AUTO): -1.72% - Continued pressure from a slowing UK secondary car market and bearish broker notes.
  4. Croda International (CRDA): -0.85% - Squeezed margins in specialty chemicals despite broader market gains.
  5. RELX (REL): -0.30% - Minor profit-taking after hitting 52-week highs earlier this month.

FTSE 100 Outlook & Investor Strategies

Outlook

  • Short Term: Bullish. Targeting 10,250 as technical momentum remains strong.
  • Medium Term: Consolidation likely between 10,000 – 10,400 as markets digest rate cuts.
  • Long Term: Analysts at AJ Bell and UBS project a year-end target of 10,750, supported by record dividends (£85.6B).

Strategies

  • Short Term: Momentum play. Ride the Mining and Basic Resources wave while gold remains in a parabolic phase.
  • Medium Term: Income focus. Accumulate high-yielders like HSBC and Shell ahead of record dividend payouts.
  • Long Term: Structural growth. Focus on Industrials and Utilities that benefit from the energy transition and AI infrastructure.

Latest Analyst & Broker Targets

  • HSBC: Target 1,350p (Goldman Sachs)
  • 3i Group: Target 3,600p (Morgan Stanley)
  • AstraZeneca: Target 14,200p (Barclays)
  • FTSE 100 Index: 2026 Target 10,750 (AJ Bell/EODHD/Others Consensus)

Current Technical Analysis Summary (Jan 29, 2026)

The FTSE 100 is exhibiting a classic "Golden Cross" on the daily charts. The RSI (14) is currently at 68, approaching overbought territory but suggesting room for a final push to 10,215. Support is firmly established at 10,080 (20-day SMA). As long as the index stays above the 10,000 psychological barrier, the trend is "Buy the Dip."

Conclusion

January 29, 2026, marks a pivotal moment for the UK market. The FTSE 100's surge to 10,196.49 isn't just a number—it’s a testament to the UK’s resilience in a commodity-driven global economy. While tech might be the talk of Wall Street, the "Old Economy" giants of London are proving that value is the ultimate currency for 2026.