FTSE 100 FINISH LINE 22/1/26
FTSE 100 FINISH LINE 22/1/26
UK stocks enjoyed a broad-based initial upswing on Thursday as investor sentiment improved following U.S. President Donald Trump's decision to step back from tariff threats linked to Greenland. Trump also ruled out the use of force to claim the autonomous Danish territory. On Wednesday, he announced he would not proceed with tariffs on exports from eight European nations to the U.S. Following a meeting with NATO Secretary General Mark Rutte, Trump outlined a framework for Greenland's future. The news brought a wave of relief across European markets, offering a reprieve after trade war concerns earlier in the week had unsettled global markets. However, the initial optimism faded by the close, as investors adjusted positions at the end of a volatile week. In the UK, this morning's data showed the UK government borrowed £11.6bn in December, bringing fiscal year-to-date borrowing (PSNB) for 2025-26 to £140.2bn, surpassing the revised full-year target of £138.3bn set in November. To stay within this target, January’s typical surplus from strong tax receipts is crucial. Meanwhile, the cash accounting measure (CGNCR) shows a more positive outlook, with the year-to-date cash requirement at £138.3bn—£4bn below OBR’s forecast. This reduces the likelihood of increasing gilt financing in the Spring Statement. However, high public spending, slower growth, and moderating inflation pose risks to tax receipts, despite their current strong performance.
Banks spearheaded the rally, lifting the index with a 1.9% gain, as major players like Barclays and HSBC each advanced over 1%. Real estate, construction, and materials sectors also posted strong gains of 1.9% each. Earnings season gained momentum, with Computacenter shares soaring 10.2% after the tech firm delivered an upbeat profit outlook. Engineering company Senior climbed 8.9%, marking its second upward profit forecast revision in two months. AJ Bell saw its stock rise 4.9%, driven by a 27.7% surge in first-quarter gross inflows for its platform business. Retailer B&M issued its second profit warning in three months, but shares rebounded with a 2.7% gain after earlier falling as much as 5%. On the downside, energy heavyweights faced pressure as crude oil prices slipped by around 1%. Computacenter shares rose 10.4% to a record 3,378p, leading FTSE midcap, which is up 1.1%. The company expects 2025 adjusted pre-tax profit of at least £270 million, surpassing the consensus of £253.6 million. They reported 32% revenue growth in FY 2025, driven by strong performance in North America and recovery in the UK and Germany. Among 11 analysts, six have a "buy" rating and five a "hold," with a median price target of 3,250p. The stock gained 38% in 2025.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 10150 Target 10300
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!