Macro update
Asian and global stocks rally on tech strength:
Asian equity markets advanced sharply on Monday, led by technology and AI-related shares, as they built on strong momentum from US markets at the end of last week.
Japanese yen weakens despite rate rise:
The Bank of Japan (BoJ) raised interest rates to their highest level in 30 years, yet the Japanese yen slid toward annual lows, providing support for export-focused equities.
UK sentiment underpinned by BoE easing backdrop:
Following recent UK rate cuts and softer inflation data, market positioning continues to reflect expectations of further monetary easing in 2026.
Foreign buyers drive UK M&A momentum:
Overseas acquirers have shown robust appetite for UK assets, pushing total deal values to multi-year highs despite a decline in domestically driven transactions.
Stock futures point to positive open:
US equity futures moved higher ahead of a holiday-shortened trading week, signalling sustained optimism among investors.
Commodities rally:
Oil prices edged higher while precious metals advanced, with both gold and silver reaching fresh record highs.
FTSE 100 loses upside momentum
The FTSE 100 is beginning to lose upside momentum below the 9,900 mark and last week’s 9,913 high.
As long as this area caps, the 17 December high at 9,853 may be revisited. Below it the late October high at 9,788 may offer support.
A rise above last week’s 9,913 high would likely engage the November record high at 9,928 and then aim for the psychological 10,000 mark.
Short-term outlook: bullish while above the 10 December low at 9,608
Medium-term outlook: bullish while above the 9,423 November low
