FTSE 100 FINISH LINE 9/2/26
FTSE 100 FINISH LINE 9/2/26
The FTSE 100 began the week on a downward trajectory as investors closely monitored the intensifying political unrest in the UK. Banking stocks faced notable pressure, with NatWest experiencing a significant drop following its announcement to acquire wealth management firm Evelyn Partners. The blue-chip index reflected cautious market sentiment amid growing uncertainty. British Prime Minister Keir Starmer suffered another setback on Sunday with the resignation of his chief of staff, Morgan McSweeney. McSweeney took responsibility for advising Starmer to nominate Peter Mandelson as the U.S. ambassador, despite Mandelson’s controversial connections to convicted sex offender Jeffrey Epstein. Starmer's popularity has taken a sharp hit, with recent polls indicating widespread voter dissatisfaction. A series of high-profile policy U-turns has further eroded his credibility, prompting some within his own party to openly question his leadership and political future. Meanwhile, rising long-term borrowing costs signal that financial markets are preparing for potential political instability. Speculation is growing that Starmer may be forced to step down, with analysts predicting a leadership change could result in a shift toward a more left-leaning successor. Such a transition could weigh on the currency and drive long-term bond yields higher, adding further complexity to the UK’s already uncertain political and economic outlook.
The FTSE 100 faced pressure as shares of NatWest Group plunged 5.5%. The decline followed the bank’s announcement of its £2.7 billion ($3.68 billion) acquisition, including debt, of Evelyn Partners, one of the UK’s largest wealth management firms. UK banking stocks collectively dropped 1.2%, reflecting investor concerns over potential interest rate cuts by the Bank of England. Last week, the central bank opted to hold rates steady after a narrow 5-4 vote, while signaling possible rate reductions if inflation continues to ease. Key economic data this week, including January’s retail sales figures and December’s GDP numbers, is expected to shed more light on the future trajectory of monetary policy. Elsewhere in the market, shares of Greggs slid 5% after Jefferies issued a cautionary note. The investment bank warned that the growing popularity of weight-loss medications could curb demand and impact the bakery chain’s sales growth. In contrast, Plus500 saw its shares soar 5.4% to an all-time high, as the online trading platform boosted investor optimism by forecasting stronger-than-expected results for 2026.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 10350 Target 10510
Below 10325 Target 10250
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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!