Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.31% on 12 December 2025. 

Macro Update: The UK economy unexpectedly shrank by 0.1% in October 2025, the second consecutive monthly contraction. This increases the risk of a technical recession and has strengthened expectations that the Bank of England will cut interest rates at its December 18 meeting. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 4.97% followed by Ashtead Group PLC (LSE: AHT) which gained around 2.75%. 

Commodity Update: The U.S. dollar is heading for its third consecutive weekly decline, pressured by expectations of rate cuts next year after the Federal Reserve pushed back against hawkish market bets, boosting the euro and sterling to their highest levels since October. Gold fell 0.20% to USD 4,304.25, silver dropped 0.88% to USD 63.98, and copper slipped 0.26% to USD 11,840.75. Brent crude rose 0.50% to USD 61.61 amid potential U.S. action on Venezuelan oil tankers. 

Our Stance: Economists largely express "cautious optimism" for 2026, forecasting modest growth of around 1.3% and slowing inflation. However, the current consensus highlights notable risks, including weak consumer demand and business investment, which could keep the UK in a low-growth cycle.  

FTSE 100: The FTSE rose 31.71 points to 9,734.87, staying well above key support near 9,200 and maintaining a stable structure. The 21-day SMA at 9,647.92 and the 50-day SMA at 9,626.74 indicate a neutral tone with potential for short-term consolidation. RSI remains high but easing slightly. Support lies at 8,950, while resistance is seen at 10,000 and 10,120. 

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Source - EODHD/Others

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