Macro update
Asian and global equities rally:
Asian markets surged, with Japan’s Nikkei 225 and South Korea’s Kospi hitting record highs as tech and artificial intelligence (AI)-linked stocks advanced, while United States (US) futures pointed to a positive tone.
Korea tech stocks power gains:
Samsung Electronics jumped 11% and SK Hynix rose more than 9%, lifting the Kospi nearly 7% and extending its year-to-date gain to 25%, as investors continued to back AI-driven memory demand despite both stocks already being up over 39% this year and still seen as reasonably valued.
Precious metals rebound after volatility:
Gold and silver bounced back strongly following recent sell-offs linked to shifting expectations around Federal Reserve (Fed) leadership, easing earlier downside pressure.
FTSE 100 lifted by defensive demand:
The FTSE 100 reached fresh highs as investors rotated into defensive sectors such as insurers and telecoms amid mixed global sentiment.
Broader markets show mixed signals:
Global indices posted varied performances, with European equities higher and US benchmarks slightly softer, while currencies and commodities recorded modest moves.
UK data and policy in focus:
Attention turns to the Bank of England’s (BoE) first Monetary Policy Committee (MPC) meeting of 2026 this week, alongside further UNited Kingdom (UK) economic releases scheduled later in the month.
FTSE 100 trades in record highs
The FTSE 100 continues to trade in record highs, targeting the 10,500 region while remaining above Monday’s 10,122 low.
Support can be found between the mid-January peak and Thursday’s high at 10,278 – 10,256 ahead of the 22 January high at 10,226.
Short-term outlook:
Bullish while above the 2 February low at 10,122.
Medium-term outlook:
Bullish while above the 20 January low at 10,049.