FTSE 100 FINISH LINE 2/12/25
The UK’s FTSE 100 edged higher on Tuesday, buoyed by gains in financial sector stocks after the Bank of England eased capital requirements for banks to stimulate growth. Industrial stocks also rebounded following a sharp decline in the previous session. The OECD revised its outlook for Britain’s economy, forecasting stronger growth next year, driven by Finance Minister Rachel Reeves’ budget, which boosted consumption and eased concerns over long-term fiscal stability. The budget, unveiled last week, sparked rallies in UK stocks, bonds, and the pound, as investors welcomed the improved fiscal outlook. Global markets are now focused on the U.S. Federal Reserve’s upcoming interest rate decision, with expectations of a 25-basis-point rate cut. Similarly, the Bank of England is anticipated to announce a comparable rate adjustment later this month.
Pre-budget uncertainty affected UK economic confidence in October and November, leading to slower credit growth expected to persist. Consumer credit fell to £1.1bn (from £1.4bn in September), and mortgage lending dropped to £4.2bn (from £5.2bn). However, these declines remain close to the 12-month average. Net mortgage lending showed a minor dip in new borrowings, offset by higher gross repayments. Mortgage approvals defied expectations, with house purchase approvals steady at 65.0k in October (vs. 64.7k 12-month average). Household leverage continues to decline despite stable nominal credit flows. A sharper credit slowdown post-November could signal worsening economic conditions.
Among financial stocks, Lloyds Banking Group led the gains with a 1.6% rise, while HSBC Holdings, Barclays, and Standard Chartered climbed between 0.9% and 1.3%. The broader banking index advanced by 1.2%, following the Bank of England’s decision to reduce capital requirements for lenders—the first such move since the global financial crisis—after banks successfully passed stress tests. Chemical stocks also performed strongly, rising 1%, with Victrex surging 7% on news of increased full-year sales by the thermoplastic polymer manufacturer. In contrast, precious metal miners saw their shares drop by 1.6% amid declining gold prices, while industrial metal miners slipped 0.2% as copper prices retreated from record highs.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 9675 Target 9760
Below 9605 Target 9566
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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!