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The UK's FTSE 100 slipped on Thursday, pressured by a decline in Shell shares after the oil giant reported quarterly profits that fell short of expectations. Adding to the cautious market sentiment was growing political uncertainty, which drove British borrowing costs higher. Concerns intensified over Prime Minister Keir Starmer’s ability to manage backlash following his controversial appointment of Peter Mandelson as U.S. ambassador, given Mandelson’s known ties to Jeffrey Epstein.

The Bank of England (BoE) narrowly decided to keep interest rates steady. As anticipated, the Monetary Policy Committee (MPC) voted to maintain the Bank Rate at 3.75% during its February meeting. After delivering a slim-margin 25bp rate cut in December, the prospect of consecutive rate reductions was always slim. However, the decision to hold rates was closer than expected, with four members favouring a cut to 3.50%—just one vote shy of the majority needed. In response, financial markets adjusted their expectations, now forecasting the next rate cut to occur in June, with a 90% probability of a reduction as early as April.

In corporate news, Playtech surged 3.4%, leading the mid-cap index, after the gambling technology firm raised its outlook and expressed optimism about entering 2026 with strong momentum. Meanwhile, Ithaca Energy gained 4.5%, buoyed by robust annual growth in both production and profits. Shares of Shell dropped 2.1% to 2,806 pence after the company reported a fourth-quarter net profit of $3.3 billion, missing analyst forecasts of $3.5 billion and reflecting an 11% year-on-year decline. Despite the weaker results, Shell reaffirmed its $3.5 billion share buyback program for the next three months. Over the past year, Shell’s stock rose 10.7%, while the FTSE 100 index climbed 21.5%.

TECHNICAL & TRADE VIEW - FTSE100

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

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