FTSE 100 FINISH LINE 4/2/26
FTSE 100 FINISH LINE 4/2/26
The UK’s FTSE 100 reached a record high on Wednesday, bolstered by a strong rally in energy stocks and a significant boost from insurer Beazley. Investors are now closely watching the Bank of England's (BoE) monetary policy decision, expected later this week. The blue-chip FTSE 100 index surged 1.4%, reflecting market optimism. While UK interest rates are anticipated to decline further this year, the BoE is likely to adopt a cautious stance on Thursday, refraining from committing to specific timelines or magnitudes for future rate cuts. This measured approach is driven by the central bank’s need for greater clarity on inflation trends. For the moment, the BoE is expected to maintain its key interest rate at 3.75% during Thursday’s meeting. In other economic news, Britain’s services sector demonstrated robust growth in January, with a notable rise in business confidence, according to a survey released Wednesday. However, the survey also highlighted a significant increase in company prices, presenting a potential challenge for the BoE as it deliberates on policy adjustments.
Energy stocks climbed 2%, supported by a rise in crude oil prices amid escalating geopolitical tensions between the U.S. and Iran. Among the standout performers, British insurer Beazley soared 8.7% after accepting an improved £8 billion ($10.97 billion) takeover bid from Zurich Insurance of Switzerland. In contrast, European software companies faced renewed pressure following sharp declines earlier in the week, as concerns over the resilience of their business models grew in light of advancements in artificial intelligence. RELX, a business information provider, dropped 2.6%, while the London Stock Exchange Group, known for its exchange operations and data services, fell 2.4%. Both companies had already recorded significant losses earlier in the week. Elsewhere, IT services firm Softcat plunged 6%, marking a one-year low, while HG Capital, which recently completed a $6.4 billion acquisition of U.S.-based financial software firm OneStream, saw its shares tumble 7.4%. Meanwhile, advertising giant WPP fell 3.2%, hitting its lowest level since 1998.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 10350 Target 10510
Below 10325 Target 10275
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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!