FTSE 100

Key insight

The FTSE 100 is in uncharted territory after printing a new all-time high at 10,979.60 — the index is consolidating a breakout, with earnings season and BoE policy hold acting as twin tailwinds, but a sharp oil slide to $80.9 from mid-week highs near $93 is a fast-moving headwind for the commodity-heavy index.

The FTSE 100 is consolidating just below its fresh all-time intraday high of 10,979.60 hit on July 30, powered by a wave of blockbuster earnings upgrades from Rolls-Royce, BAE Systems and Lloyds, while the Bank of England's hold at 3.75% removes near-term policy shock risk.

Main risk

Oil price collapse — Brent sliding toward $80

Brent crude has dropped sharply to ~$80.9 (-2.0% today) from mid-week peaks near $93, threatening the profit outlook for Shell, BP and energy majors that comprise a significant weight in the FTSE 100, and risks dragging the index below key support at 10,850.