FTSE 100 FINISH LINE 1/5/26
London’s FTSE 100 ended almost flat on Friday; the muted close masked a stronger weekly performance as investors balanced recent gains against weaker miners and lingering macro risk. The FTSE 250 edged up , suggesting slightly better appetite for mid-caps, but the broader tone remained cautious rather than outright bullish. After Thursday’s Bank of England hold, markets appeared to settle into a wait-and-see mode: the policy shock was avoided, but the inflation risk from elevated energy prices and Middle East tensions remains unresolved.
The main drag came from mining stocks, which softened as copper prices retreated, easing some of the pressure on the commodity trade that had supported London earlier in the week. That mattered because the FTSE 100’s recent resilience has leaned heavily on hard-asset exposure — oil, metals and global cyclicals — rather than confidence in the UK domestic economy. With copper easing, investors had less reason to chase miners after their recent outperformance, while energy remained underpinned by geopolitical risk but no longer delivered enough upside to pull the whole index meaningfully higher.
The macro setup remains the key constraint. The market is still digesting a difficult mix: the Bank of England’s 8-1 hold at 3.75%, the possibility that energy disruption could force a more hawkish path later, and tentative hopes that the U.S.-Iran conflict may yet stabilise. That combination helps explain not only why the index did not sell off aggressively but also why buyers were reluctant to extend Thursday’s rally. Sterling and gilts have already reflected some relief after the BoE decision, yet equities remain trapped between earnings support and inflation risk.
Politically, UK risk has not disappeared either. The market continues to price Britain as more vulnerable to the energy shock than many peers because of its reliance on natural gas, while Westminster uncertainty around Keir Starmer’s government adds background noise heading into local-election season. For now, the FTSE’s sector mix is still doing the heavy lifting: when oil, miners or global defensives work, the benchmark can stabilise; when commodities fade, the domestic story is not strong enough to carry it. The finish line for Friday is that the FTSE 100 held up, but it did not break out — the index logged a solid week yet ended it with investors still waiting for clearer signals from geopolitics, commodities and central banks.
TECHNICAL & TRADE VIEW – FTSE100
Daily VWAP Bearish
Weekly VWAP Bullish
Above 10100 Target 11000
Below 10000 Target 9469
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!