Photo by Jamie Street on Unsplash
 

London’s FTSE 100 remained stable on Wednesday, as losses in banking and industrial sectors, driven by renewed trade tensions involving Greenland, overshadowed encouraging earnings reports. The blue-chip index fluctuated but managed to recover earlier losses, closing slightly higher. Investors found some relief after U.S. President Donald Trump’s speech at Davos was less confrontational than anticipated. Trump assured that no military action would be taken in the Greenland dispute, calming market nerves. Earlier in the week, market sentiment took a hit when Trump threatened escalating tariffs on eight European nations starting February 1 unless the U.S. was granted the ability to purchase Greenland. On the domestic front, UK inflation rose higher than expected in December. However, optimism persisted as investors anticipated the Bank of England would lower interest rates later this year. Markets are still pricing in a sharp decline in headline inflation by 2026, with expectations of three rate cuts in March, June, and September.

The banking sector weighed heavily on the FTSE 100, dropping 0.9%, while industrial support services and aerospace & defence companies fell by 2.1% and 1.4%, respectively. Experian, the credit data and analytics giant, maintained its full-year outlook and posted an impressive 8% rise in third-quarter organic revenue. Despite this, its shares slid 5.2%. On a positive note, Rio Tinto’s London-listed shares soared 5% after the mining giant surpassed expectations for iron ore and copper production in the latest quarter. Industrial and precious metal miners also saw gains, fuelled by rising gold, silver, and copper prices as investors sought safe-haven assets amid uncertainty. Luxury brand Burberry shone brightly, with its shares climbing 5% following stronger-than-expected holiday season sales growth. Meanwhile, the FTSE 250 midcap index edged up 0.1%, led by Premier Foods, which surged 6.6%. Known for its Mr Kipling brand, the company announced its annual profit is likely to reach the upper end of market expectations. However, not all updates were positive—JD Wetherspoon shares plunged 6.7% after the pub chain warned that profits for fiscal 2026 could face significant pressure. 

TECHNICAL & TRADE VIEW - FTSE100

Daily VWAP Bearish 

Weekly VWAP Bullish

Above 10150 Target 10300

Below 10070 Target 9950
 

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