FTSE 100 FINISH LINE 13/1/26
The UK's FTSE 100 remained relatively flat on Tuesday morning as investors processed a range of corporate updates. However, U.S. investors reacted poorly to slightly cooler US inflation data, reversing risk sentiment and dragging the UK benchmark index slightly lower. The pound is at a pivotal juncture, with market participants keenly observing forthcoming economic indicators from both the UK and the US, especially after the pound retreated from its trend highs near 1.35 following recent releases. Cable experienced a pullback even though the U.S. core inflation was lower than expected and real weekly earnings continued their downward trend. After the CPI report, the pound initially climbed towards the upper end of its recent range, just above 1.35, before stabilising back near its levels prior to the data release at 1.3460.
Energy stocks provided some support, advancing on supply concerns tied to Iran and Venezuela. Heading into the close, the FTSE 100 had slipped 0.25%, retreating from a record close in the previous session, while the domestically focused mid-cap index also edged lower. The FTSE 350 Oil & Gas index climbed 1%, with BP and Shell both gaining approximately 1%. Oil prices rose amid fears of reduced exports from Iran and Venezuela. Other sectors such as media, beverages, and real estate saw gains as investors shifted toward income-generating and rate-sensitive stocks ahead of the inflation data release. In contrast, the precious metals and mining index dropped 1.5%, erasing some of the 6% gain it had posted in the previous session. Shares of Raspberry Pi fell 6% after the single-board computer manufacturer cited ongoing volatility in the supply and pricing of memory as a challenge for its 2026 outlook. Whitbread led individual gains on the FTSE 100, rising 4.8%, after the hotel operator announced a smaller-than-expected impact from business rate hikes outlined in the UK's autumn budget. Meanwhile, British pest control firm Rentokil Initial declined 1.6% to 465.8p, making it one of the FTSE 100's biggest losers, as the index overall dipped slightly by 0.01%.
In leadership developments, Rentokil revealed that Mike Duffy, currently with OnTrac, will replace Andy Ransom as CEO following Ransom's retirement in March. Analysts at Jefferies welcomed the announcement, noting Duffy's extensive experience managing multi-site U.S. operations and his proven ability to drive profitable growth in private equity-owned businesses. Despite today's decline, Rentokil recorded an 11.3% gain in 2025, though this trails the FTSE 100's robust 20.2% rise over the same period.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 10050 Target 10250
Below 9930 Target 9800
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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!