FTSE 100 FINISH LINE 14/1/26
The UK's FTSE 100 reached a record high on Wednesday, driven by robust performances in the mining and healthcare sectors, although education company Pearson faced a setback after losing a key contract in New Jersey. While the index retreated slightly from its peak as the session headed towards the close, it remained in positive territory, rebounding from a quieter trading day yesterday. The precious metals and mining sector was a standout performer, with its index rising 1.9%, supported by a 1% increase in gold prices to $4,632.03 per ounce. This surge was underpinned by softer U.S. inflation data, which raised expectations of Federal Reserve interest rate cuts and spurred demand for safe-haven assets amid ongoing global uncertainties. Heightened investment in gold was further fuelled by a more assertive Donald Trump, who was pressuring the Federal Reserve, urging corporations to align with his policies, and even suggesting plans to acquire Greenland. On the monetary policy front, Bank of England policymaker Alan Taylor indicated that UK interest rates are likely to continue declining, with inflation expected to reach the 2% target by mid-2026—sooner than previously forecasted.
London-listed mining giants Antofagasta, Rio Tinto, and Glencore saw their shares rise between 1.1% and 2.1%, buoyed by an increase in copper prices. The pharmaceutical sector also enjoyed gains, climbing 1.6%, led by AstraZeneca. The pharmaceutical giant’s shares rose after announcing its acquisition of Boston-based Modella AI, reflecting the growing adoption of artificial intelligence to accelerate drug discovery. However, not all sectors shared in the upbeat momentum. The FTSE 100's media index dropped 2.8%, weighed down by an 8% slump in Pearson shares, making it the worst performer on the index. The British education company reported that its largest division, Assessment & Qualifications, had lost a significant contract with New Jersey, which is expected to create headwinds in the first half of 2026. BP also faced challenges, slipping 1.3% after the oil giant announced anticipated fourth-quarter impairments of $4 billion to $5 billion, primarily linked to its energy transition initiatives.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 10130 Target 10250
Below 10070 Target 9950
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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!