AI strength meets market uncertainty amid rate and growth worries:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.32% on 21 November 2025.  

Macro Update: Britain’s economy is showing growing strain ahead of next week’s budget, with business surveys signalling a slowdown as firms delay decisions over expected tax hikes, adding pressure on finance minister Rachel Reeves to balance fiscal tightening without damaging weak growth. Corporate updates highlighted a mixed backdrop: defence contractor Babcock reported a 19% rise in first-half profit and strong prospects from rising global defence spending, while ASOS warned of subdued 2026 profit due to weak consumer demand despite cost-cutting efforts. Tullow Oil also cautioned that production will sit at the bottom of its forecast as it battles debt and delayed payments from Ghana. Meanwhile, the FTSE 100 edged higher as energy and defence stocks rallied following Nvidia-driven optimism in global markets, offering a temporary lift amid domestic uncertainty. 

Top Market Movers: Among top gainers on FTSE 100 index, Persimmon PLC (LSE: PSN) witnessed a rise of 3.26% followed by Diageo PLC (LSE: DGE) which gained around 2.86%. 

Commodity Update: The dollar headed for its strongest weekly gain in over a month as traders bet the Fed won’t cut rates next month, with a mixed U.S. jobs report offering little clarity. Gold slipped 0.09% to USD 4,056.40, silver fell 1.32% to USD 49.63, and copper eased 0.26% to USD 10,700. Brent crude dropped 1.12% to USD 62.67 amid U.S. efforts toward a Russia-Ukraine peace deal and caution over rate-cut uncertainty. 

Our Stance: Nvidia’s blockbuster earnings initially eased fears of an AI-driven bubble, but its record $57 bn revenue and $32 bn profit only reinforced concerns about an overheated tech market at a time when broader economic signals are weakening. U.S. labour data showed accelerating job growth but rising unemployment, reflecting a cooling market strained by tariffs and automation, while Federal Reserve officials warned of systemic risks tied to private credit, AI-based trading, and stretched asset valuations. The mixed macro backdrop triggered a sharp market sell-off, with Wall Street reversing gains, volatility spiking, and global markets sliding—signalling that even Nvidia’s stellar performance cannot offset growing anxiety over inflated tech valuations and uncertain interest-rate direction.  

FTSE 100 

The FTSE slipped 51.13 points to 9,476.52 but remains comfortably above the key support area near 9,200, keeping the broader structure intact. The 21-day SMA at 9,699.28 sits below the current market price, reflecting a mild bearish undertone, while the 50-day SMA at 9,510.19 points to overall stability and the potential for near-term consolidation. The RSI is elevated yet leans slightly bearish, implying a modest negative bias. Immediate support is around 8,950, with resistance seen at 10,000 and 10,120. 

Source - EODHD/Others