The FTSE 100 Finish Line

The UK's FTSE 100 reached a new high on Wednesday, buoyed by a slowdown in domestic inflation last month, which has heightened anticipation of a potential interest rate cut as early as March. Defence stocks also rallied, driven by impressive results from BAE Systems. The FTSE 100, the UK's blue-chip index, climbed over 1% to hit an intraday record of 10,666.68 as the FTSE 250 midcap index edged up 0.2%, reaching its highest level in four years. According to the Office for National Statistics, inflation in Britain eased to 3.0% in January—its lowest level in nearly a year—thanks to slower price increases in transport, food, and non-alcoholic beverages. The British pound remained relatively steady against the US dollar as markets factored in an almost 80% likelihood of a March interest rate cut, following a weak labour market report on Tuesday that had put pressure on the currency.

Defence stocks saw significant gains, climbing 2.5%. BAE Systems led the charge with a 3.4% jump after reporting full-year operating profits that exceeded expectations. The company also revealed a record-breaking order backlog of £83.6 billion ($113.4 billion), driven by strong global demand. On the mining front, Glencore rose 2.7%, rebounding from a failed takeover bid for Rio Tinto. The miner posted slightly lower annual earnings but sweetened the deal for investors with a $2 billion shareholder payout. Energy stocks also gained momentum, rising 1.3%, as oil prices recovered following Tuesday's dip. Investors kept a close eye on U.S.-Iran negotiations, weighing the potential for progress while remaining cautious about the likelihood of a final agreement that could alleviate supply concerns. Elsewhere, Raspberry Pi shares skyrocketed for the second consecutive day, surging 26%. Market chatter suggested that the company's products could play a key role in affordable artificial intelligence projects, fuelling investor excitement.

TECHNICAL & TRADE VIEW - FTSE100

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  Daily VWAP Bullish

• Weekly VWAP Bullish

• Above 10550 Target 10700 

• Below 10500 Target 10330