FTSE 100 Forecast: UK Stocks Down but Trend Remains Strong
By Fawad Razaqzada, Market Analyst
Date: February 19, 2026
Market Overview
The FTSE 100 index experienced a decline of nearly 1% today, following a period of reaching all-time highs. This drop is attributed to investors processing various earnings results. However, the downturn is expected to be temporary, bolstered by a weaker pound and anticipations of interest rate cuts by the Bank of England (BoE) in March and possibly again in June. This has led to increased investment in UK stocks.
Reasons for Today's Decline
The decline in the FTSE 100 is largely due to a broad sell-off in sectors such as mining, energy, and banking, influenced by some disappointing earnings reports. Notably, weaker earnings from Airbus have also negatively impacted European market sentiment. Despite this, the recent record highs suggest that today's decline is more of a modest pullback rather than a significant downturn.
Sector Performance
While mining stocks faced pressure, information and software companies have provided some support to the FTSE 100. Following concerns about potential AI disruptions, sentiment towards the tech sector has improved, with companies like RELX and Sage Group performing well.
Macro Trends and Economic Indicators
The British pound has continued to weaken, influenced by recent economic data showing a slowdown in average earnings growth. This has heightened expectations for interest rate cuts from the BoE, with a potential move in March rather than April. The upcoming economic data, including retail sales and PMI figures, will be crucial in shaping market sentiment.
FTSE 100 Technical Analysis
Despite the recent dip, aggressive buying has been observed in the FTSE 100, indicating a sustained bullish trend. Key support levels to monitor include 10,600 and 10,586, while resistance is noted at the all-time high of 10,716. As long as market sentiment remains stable, the outlook for the FTSE 100 appears positive.