FTSE 100 Forecast - Indices Weekend Outlook | February 16, 2026

Market Overview

As the US observes Presidents’ Day and China celebrates the Spring Festival, the focus shifts to European markets, particularly the FTSE 100. The upcoming week is expected to be significant with numerous earnings reports from the UK, Europe, and the US, alongside key economic data that could influence rate cut expectations in both regions.

Recap of Last Week

The previous week was marked by volatility in major indices, primarily driven by weakness in US tech stocks. However, major indices managed to maintain key support levels. A robust US jobs report was followed by inflation data that came in lower than anticipated at 2.4% year-on-year, down from 2.7% the previous month. This softer inflation has led markets to anticipate more aggressive easing from the Federal Reserve, with a 30% chance of a rate cut by April and over 80% by June.

In the UK, the FTSE 100 has been trading near record highs, buoyed by expectations of rate cuts from the Bank of England due to signs of economic weakness. The UK economy ended 2025 on a weak note, particularly in construction and business investment, which has raised growth concerns. Despite this, the pound did not experience a significant sell-off, although it remains fragile against commodity currencies.

Looking Ahead

Several market-moving data releases are scheduled for the upcoming week. Key highlights include:

• UK wages data on Tuesday
• UK CPI on Wednesday, expected to ease to 3.0% from 3.4%
• Global PMIs and US GDP on Friday
• Core PCE inflation, the Fed’s preferred measure, also on Friday

Upcoming Earnings Reports

The earnings results from UK companies will significantly impact the FTSE 100 forecast. Notable companies reporting include:

• BP
• AstraZeneca
• Barclays
• S&P Global
• The Coca-Cola Company
• Robinhood Markets
• Cisco Systems
• McDonald’s
• Unilever
• Anheuser-Busch InBev

Key Levels for FTSE 100

Recent aggressive dip buying has established key short-term support levels for the FTSE 100. Important levels to watch include:

• Support: 10,400, 10,375, 10,300, 10,280
• Resistance: 10,480 and the all-time high at 10,545