The FTSE 100 Finish Line

London's FTSE 100 saw a slight increase on Tuesday, as indications of a softening labour market fuelled hopes for an interest rate cut next month, although falling metal prices weighed on mining stocks. The blue-chip FTSE 100 rose by 0.5%, approaching a record high, while the mid-cap FTSE 250 fell by 0.1%. According to data from the Office for National Statistics, Britain's unemployment rate climbed to 5.2%, the highest level in over a decade (excluding the pandemic), while wage growth continued to slow.

The pound dipped 0.2% against the dollar as investors began to price in an approximately 80% likelihood of a quarter-point cut by the Bank of England, up from 65% the previous day. In response to the data, bank shares rose by 0.3%. The January consumer price data set to be released on Wednesday could provide further insights into the bank's monetary policy direction. Meanwhile, geopolitical tensions appeared to ease somewhat, with U.S. and Iran engaging in indirect talks in Geneva. Later, U.S.-facilitated discussions between Ukraine and Russia were scheduled to address territorial disagreements.

Defence stocks fell by 1.6% on expectations of diminished demand, while precious-metal miners also declined amid reduced interest in safe-haven assets. Miner Antofagasta reported a 52% increase in annual core profits, but its shares dropped by 5% due to weak copper prices. Technology stocks gained 1.7% following last week's turbulence related to artificial intelligence in global markets, with information group RELX and credit analytics firm Experian rising by 2.3% and 1.3% respectively. Plus500 fell by 6.4% to the bottom of the mid-cap index after the multi-asset trading platform announced that its CEO, CFO, and CMO would collectively sell 1.5 million shares. InterContinental Hotels Group saw a 1.3% drop even after reporting fourth-quarter global revenue per available room that exceeded market expectations.

TECHNICAL & TRADE VIEW - FTSE100