Buffett’s Alphabet stake lifts AI sentiment, but rate worries persist:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.18% on 17 November 2025.  

Macro Update: Britain plans a major asylum and human-rights overhaul—tightening how courts interpret the ECHR—to curb “last-minute” appeals and accelerate removals, a move framed as stemming Reform UK’s rise. Housing momentum softened ahead of the Nov 26 budget: Rightmove reports asking prices fell 1.8% in the four weeks to Nov 8 (largest seasonal drop since 2012), with record-high listings weighing on values. The BoE’s first life-insurer stress test under its new framework found all 11 participants stayed above capital minima through a deep recession scenario, signaling sector resilience. Markets, however, remain jittery: reports that Finance Minister Rachel Reeves will avoid income-tax hikes stoked fiscal-funding concerns, knocking sterling, lifting gilt yields, and pressuring UK equities as investors reassess the budget’s credibility and growth outlook. 

Top Market Movers: Among top gainers on FTSE 100 index, WPP PLC (LSE: WPP) witnessed a rise of 5.21% followed by British American Tobacco PLC (LSE: BATS) which gained around 2.26%. 

Commodity Update: The dollar edged higher on Monday as traders awaited a wave of U.S. economic data after the government shutdown ended, seeking clearer cues on the Fed’s December rate outlook. Gold dipped 0.40% to USD 4,078.40, while silver inched up 0.08% to USD 50.72, and copper was nearly flat at USD 10,837.40. Brent crude slipped 0.90% to USD 63.81 as exports resumed at Russia’s Novorossiysk port. 

Our Stance: The market reaction to Alphabet’s 5.5% pre-market surge—following a nearly $5 billion stake disclosed by Berkshire Hathaway—captures the balancing act in tech: on one hand, backing from legendary investor Warren Buffett signals confidence in the AI-investment narrative, but on the other, heavier scrutiny of tech valuations looms amid risk of AI-driven exuberance. Alphabet’s announcement of a $40 billion investment in three new Texan data centres fuels the infrastructure arms race in AI, yet it also raises questions about capital intensity and timing. Meanwhile, ahead of Nvidia Corp’s earnings, volatility is spiking—investors face a bifurcated story between structural AI growth and near-term macro uncertainty tied to rates, data releases and emerging-market softness. In sum: while long-term faith in large-cap AI plays remains, the current backdrop suggests caution is warranted around pace and pricing of the upside.  

FTSE 100 

The FTSE slipped 0.53 points to 9,697.84 but remains comfortably above the key support zone near 9,200, keeping the broader structure intact. The 21-day SMA at 9,693.69 and the 50-day SMA at 9,400.33 indicate a stable trend, suggesting the index may witness near-term consolidation. The RSI remains elevated yet within bullish territory, signalling a mildly positive undertone. Immediate support is seen around 8,950, while resistance levels are placed at 10,000 and 10,120. 

Source - EODHD/Others