FTSE 100 FINISH LINE 12/12/25
The main UK stock indexes initially rose on Friday before softening towards the close as U.S. market sentiment deteriorated. A surge in risk appetite reversed amid renewed concerns over AI valuations, which dented the Nasdaq by over 1%. Domestically, data revealed that Britain's economy contracted by 0.1% in the three months leading up to October, signalling a loss of momentum ahead of Finance Minister Rachel Reeves' budget announcement. This fuelled expectations of a Bank of England rate cut next week, with markets pricing in a 90% probability of a 25-basis-point reduction. The contraction cast doubt on the central bank’s forecasts of moderate growth in the fourth quarter. Key UK labour market data (Tuesday) and inflation figures (Wednesday) are due next week, preceding the BoE decision. Strong results from either report could unsettle markets, despite the high likelihood of a rate cut. Additionally, December flash PMI data (Tuesday) may show some recovery from pre-budget lows, with similar flash surveys also expected for other countries. November retail sales and public finance reports (both Friday) will round out the week for UK economic updates.
Meanwhile, a gauge of precious metal miners surged to a record high, buoyed by an impressive rally in gold and silver prices this year as traders factored in further U.S. interest rate cuts. The FTSE 350 index of precious metal miners jumped 4.6% to an all-time high, with gold and silver prices climbing over 1%. Silver reached a new peak, supported by a weaker dollar. Hochschild Mining led gains in the UK midcap index, rising 7.6%, while Fresnillo and Endeavour Mining bolstered the FTSE 100’s performance. U.S. and European stocks neared record levels after the Federal Reserve’s expected 25-basis-point rate cut on Wednesday, alongside labour market data that reinforced expectations for additional easing.
The FTSE 100 was on track for a 0.6% weekly gain, while the midcap index was projected to post a 0.3% weekly decline. Among individual stocks, InterContinental Hotels Group rose 2% after Jefferies upgraded its rating for the Holiday Inn owner from 'hold' to 'buy'. In contrast, Card Factory shares plunged around 26% after the greeting cards and gifts retailer warned of a drop in annual profits due to weaker-than-expected sales in UK stores, coupled with concerns over continued weak high street foot traffic during the festive season. Harbour Energy climbed 4.1% after the oil and gas producer announced its acquisition of all subsidiaries of Waldorf Energy Partners and Waldorf Production for $170 million.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bearish
Above 9720 Target 9783
Below 9670 Target 9550
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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!