FTSE 100 FINISH LINE 15/4/26
FTSE 100 FINISH LINE 15/4/26
London equities were little changed on Wednesday, with weakness in financials and energy offsetting strength in healthcare, as investors stayed cautious amid continued uncertainty around the Middle East. The tone remained tentative as markets balanced hopes for renewed US-Iran talks against ongoing efforts by Washington to tighten pressure on Tehran’s maritime trade. Oil held below $100/bbl, leaving UK energy stocks down 0.1%. Financials were the main drag, with banks off 0.4% and life insurers down 0.8%; HSBC fell 0.6% and Prudential lost 1.8%. Britain's financial regulator, the Financial Conduct Authority (FCA), announced a consultation on upcoming regulations for the crypto industry, set to take effect by October 2027. The FCA seeks feedback on proposed rules for various crypto activities, including trading platforms, dealing, staking, and safeguarding crypto assets.
Defensively, healthcare outperformed, led by AstraZeneca (+1.0%). The personal goods sector was the weakest part of the market, pressured by a 1.3% fall in Burberry after disappointing updates from Kering and Hermès weighed on sentiment. At the stock level, Antofagasta was the top FTSE 100 performer, up 2.9%, after guiding to higher copper production through the year. Saga jumped 10.7% after saying it was on track to reach its medium-term profit targets ahead of schedule. Barratt Developments rose 1.6%, with investors looking through lower land spending and approval targets.
The International Monetary Fund has delivered a significant blow to Britain's economic growth outlook, primarily due to the ongoing conflict in Iran. On Tuesday, the IMF revised its forecast for the UK, predicting a mere 0.8% growth in 2026, a steep decline from the earlier estimate of 1.3%. This adjustment marks the largest downgrade among all Group of Seven nations, highlighting the challenges ahead for the British economy. The UK's reliance on imported natural gas has led to a 40% price increase since the war began, causing a rise in government borrowing costs. Consequently, British two-year bonds have underperformed, with yields increasing nearly 70 basis points to 4.2%. Traders are adjusting expectations for Bank of England rate hikes, but optimism for resolving oil flow disruptions in the Strait of Hormuz has tempered some of this pricing, contributing to declines in the pound.
TECHNICAL & TRADE VIEW – FTSE100
Daily VWAP Bearish
Weekly VWAP Bullish
Above 10500 Target 10900
Below 10300 Target 10100
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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!