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London's FTSE 100 edged higher on Friday, with gains in heavyweight lenders counterbalancing another decline in data analytics firm RELX, which has been caught in a global selloff driven by concerns over disruptions from advancements in artificial intelligence. The blue-chip index climbed over 1% as it approached the close of a turbulent week. The market appears set for a second consecutive week of gains, supported by the Bank of England’s signal on Thursday that interest rates could be reduced if inflation continues its downward trend. Governor Andrew Bailey's comments on the Bank of England nearing a neutral stance have shifted market expectations toward a more aggressive easing cycle. Analysts now anticipate softer UK inflation and rising unemployment, with some predicting a 6–3 vote for a 25 basis point rate cut at the March 19 MPC meeting. However, policy remains data-dependent, with wage growth and political uncertainty posing key risks. Markets expect earlier rate cuts, but upcoming employment, wage, and inflation data will be critical in confirming or altering this outlook. In contrast, the mid-cap FTSE 250 index remained largely flat and is on course for its second straight weekly decline, weighed down by domestic political uncertainty. Prime Minister Keir Starmer faced significant backlash after emails revealed UK ambassador Peter Mandelson’s links to Jeffrey Epstein. Political risk consultancy Eurasia Group raised the probability of Starmer’s removal this year to 80%, up from 65%, citing the scandal as causing "irreparable damage."

On the corporate front, RELX, a business information provider, dropped 3.5%, marking its fourth consecutive week of losses. Meanwhile, the London Stock Exchange Group recovered slightly, gaining 1.2% after sharp losses earlier in the week. Financial stocks offered a bright spot, with major banks such as Barclays, NatWest Group, and Lloyds advancing between 1% and 1.6%. Across the Atlantic, U.S. tech giants faced headwinds, with investor sentiment rattled by Amazon.com’s announcement of a 50% increase in spending plans. Amid the challenges, there were some positive developments. London-listed mining stocks performed well, with Fresnillo climbing 1.8% to become one of the top gainers on the benchmark index. In the housing market, British house prices posted their strongest growth in over a year in January, according to mortgage lender Halifax, offering a glimmer of hope for the sector. In retail, fashion giant Next rose 0.5% following its acquisition of British footwear brand Russell & Bromley through an insolvency deal worth £2.5 million ($3.4 million), reflecting the company’s strategy to expand its portfolio despite challenging market conditions.

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bullish
• Weekly VWAP Bullish
• Above 10350 Target 10510
• Below 10325 Target 10250

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