FTSE 100 Declines Slightly as UK Manufacturing PMI Returns to Growth:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.17% on 01 December 2025. 

Macro Update: The UK manufacturing sector has demonstrated underlying resilience, returning to growth after a prolonged contraction. This recovery, signified by the PMI moving above the stagnation threshold of 50, is particularly notable as it occurred despite significant business uncertainty and a subdued economic environment ahead of the Autumn Budget. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 4.78% followed by Reckitt Benckiser Group PLC (LSE: RKT) which gained around 2.31%. 

Commodity Update: The dollar slipped at the start of December as markets positioned for a crucial month that may deliver the Fed’s final rate cut of the year and confirm a dovish successor to Jerome Powell. Commodities traded firmer, with gold up 0.51% at USD 4,276.40, silver rising 1.53% to USD 57.31, and copper edging 0.35% higher to USD 11,237. Brent crude jumped 1.51% to $63.32 after OPEC+ paused its planned output increases. 

Our Stance: The sector is experiencing a dual benefit of easing cost pressures and competitive dynamics. For the first time in over two years, factories reduced their output prices. This subsiding price pressure, combined with the weak growth environment, shifts the economic policy focus towards stimulating expansion rather than combating inflation.  

FTSE 100 

The FTSE 100 slipped 10.90 points to 9,709.61 but continues to trade comfortably above the major support zone near 9,200, preserving a broadly stable bias. The 21-day SMA at 9,689.45 remains below the index, signalling a mild positive undertone, while the 50-day SMA at 9,563.60 reinforces broader structural stability with scope for short-term consolidation. The RSI is still elevated, though showing a slight downward tilt. Immediate support is placed near 8,950, while resistance levels are seen at 10,000 and 10,120. 

Source - EODHD/Others