AI optimism lifts markets despite lingering data and rate-cut uncertainty:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.57% on 20 November 2025.  

Macro Update: Britain’s market narrative was mixed, with regulators pushing reforms while economic signals remained cautious. The Financial Conduct Authority continued plans for a consolidated tape to boost market transparency and attract listings, aiming for launch in 2027. Corporate news was softer, as JD Sports warned profits would likely land at the lower end of expectations due to weak consumer indicators. Inflation cooled to 3.6% in October, lifting expectations of a December Bank of England rate cut, but gilt yields still climbed sharply as investors doubted the government’s fiscal intent ahead of the Nov. 26 budget. Meanwhile, BP temporarily shut a major U.S. pipeline after a leak, adding to market uncertainty despite falling inflation data. 

Top Market Movers: Among top gainers on FTSE 100 index, Games Workshop Group PLC (LSE: GAW) witnessed a rise of 12.93% followed by Halma PLC (LSE: HLMA) which gained around 12.87%. 

Commodity Update: The U.S. dollar held steady in early Asian trade on Thursday as investors awaited key payroll data and reassessed expectations of Fed rate cuts. Gold dipped 0.15% to USD 4,076.90, while silver rose 0.68% to USD 51.20 and copper edged up 0.23% to USD 10,782.05. Brent crude gained 0.30% to USD 63.71 following a sharp drop in U.S. inventories, amid reports of a potential new U.S.–Russia peace plan for Ukraine. 

Our Stance: Nvidia’s latest earnings eased fears of an overheated AI boom, with accelerating revenue and upbeat forecasts that boosted Wall Street tech stocks and lifted global markets, prompting a relief rally in Europe. The optimism contrasted with weaker U.S. fundamentals, as upcoming labour data is expected to show sluggish job growth and unemployment near a four-year high, reinforcing concerns over slowing momentum. At the same time, the Federal Reserve signalled less urgency to cut rates, keeping the dollar strong—particularly against the yen, where its surge has raised speculation of currency intervention. Oil prices inched higher on tighter U.S. inventories, though broader supply worries remain linked to geopolitical developments. Overall, markets are buoyed by AI-driven sentiment despite macro signals that remain cautious.  

FTSE 100 

The FTSE 100 is trading 62.24 points higher at 9,569.65, continuing to hold firmly above the key support zone near 9,200, which keeps the broader structure intact. The 21-day SMA at 9,706.14 sits above the CMP, reflecting a mild bearish undertone, while the 50-day SMA at 9,507.16 signals overall stability and suggests potential for near-term consolidation. The RSI remains elevated but within bearish territory, indicating a slightly negative bias. Immediate support is seen near 8,950, with resistance at 10,000 and 10,120. 

Source - EODHD/Others