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The FTSE 100 in London opened slightly lower on Thursday, pressured by a decline in oil stocks, but managed a modest recovery by the close, finishing marginally in the green. Defence shares soared to record highs, buoyed by increasing military budgets and escalating geopolitical tensions, which helped offset losses elsewhere in the index. On the econ front, in the housing market, British property prices registered a mere 0.3% annual growth in December, the slowest pace since March 2024. Economic uncertainty and tax concerns continued to weigh on the sector, according to mortgage lender Halifax.

Shell shares dropped 2.6% after the company revised its fourth-quarter liquefied natural gas production forecast and warned of potential losses in its chemicals division. BP also saw a decline, with shares slipping 0.6%. The energy sector faced headwinds due to concerns over potential oversupply, with forecasts predicting a significant surplus by early 2026, despite a slight rise in oil prices during the day. Defence stocks provided a bright spot, surging to new highs alongside gains in European and U.S. markets. This rally followed comments from former President Donald Trump advocating for increased U.S. defence spending. BAE Systems jumped 6.1%, while Chemring and Avon Technologies each gained approximately 1%. Rising geopolitical tensions, particularly U.S. actions against Venezuela earlier in the week, further bolstered defence stocks.

Among individual stocks, Associated British Foods plunged 11.3% after issuing a profit warning, citing a sharp slowdown at its Primark fashion chain and weaker demand in the U.S. food market. Greggs also struggled, with shares tumbling 7.7% as the fast-food chain warned that subdued consumer confidence could lead to flat profits this year, despite a boost in sales during the Christmas period. Tesco shares fell 4.9%, despite reporting a 3.2% rise in underlying UK sales during the critical Christmas trading season. While Tesco projected full-year profits at the upper end of its guidance range, the news failed to reassure investors.

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bearish 
• Weekly VWAP Bullish
• Above 10050 Target 10250
• Below 9930 Target 9800

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