FTSE 100 FINISH LINE 3/3/26
FTSE 100 FINISH LINE 3/3/26
The FTSE 100 in London fell for the second straight session, shedding over 3% on Tuesday as investors scaled back expectations for interest rate cuts amid global concerns regarding potential inflation driven by soaring oil prices. The US/Iran conflict may extend beyond ordinal timescales, causing a global double dip in risk sentiment following Monday’s selloff. Banking stocks, highly sensitive to economic shifts, were among the worst performers. HSBC dropped 4.7%, Barclays declined 4.2%, and Lloyds Banking Group fell 3.4%.
In contrast to previous years, the 2026 UK Spring Statement was deliberately low-key, reflecting Chancellor Rachel Reeves’s strategy to downplay its significance. The ongoing geopolitical tensions in the Middle East further overshadowed the update, reinforcing its perception as a routine fiscal event rather than a pivotal policy announcement. This measured approach highlights the government’s focus on maintaining stability in fiscal messaging while leaving room for more impactful decisions in the autumn, which will likely depend on developments in the Middle East. Meanwhile, British government bond yields surged for a second consecutive day as investors sharply reduced expectations of a Bank of England rate cut. Concerns that the U.S.-Israeli conflict with Iran could exacerbate inflationary pressures led traders to price in less than a one-in-three chance of a quarter-point rate cut this month, a significant drop from the 80% likelihood seen late last week.
Among individual stock movers, Smith & Nephew rose 3.9% after Barclays raised its price target for the medical products maker. On the other hand, IAG tumbled 6.5%, reflecting a broader selloff in airline stocks as rising fuel prices and ongoing Middle East travel disruptions weighed on the sector. Shares of Aberdeen fell 5.8% to 209.4p, contributing to a 1.4% decline in the FTSE 250 index. The company announced it would not reach its £1 billion net inflow target until 2027, pushing the previous target to FY2026. It maintains its 2026 targets for operating profit and net capital generation at a minimum of £300 million. Analysts from Panmure Liberum noted that upward pressure on estimates and reiterated guidance indicate significant changes. Aberdeen reported a 2025 adjusted operating profit of £264 million, up from £255 million in 2024, and the stock rose approximately 45.7% that year.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bearish
Weekly VWAP Bullish
Above 10750 Target 11000
Below 10650 Target 10550
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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!