FTSE Holds Firm as Rate-Cut Bets Offset Brexit Growth Concerns

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.06% on 05 December 2025. 

Macro Update: The Autumn Budget in late 2025 led to increased spending and taxes, with the Office for Budget Responsibility (OBR) forecasting a higher surplus by 2029-30. However, the OBR also revised its GDP growth forecast downwards to 1.5% over the next five years, reflecting a more cautious economic outlook. 

Top Market Movers: Among top gainers on FTSE 100 index, 3I Group PLC (LSE: III) witnessed a rise of 3.3% followed by Melrose Industries PLC (LSE: MRO) which gained around 2.75%. 

Commodity Update: The U.S. dollar hovered near a five-week low as traders awaited next week’s Federal Reserve meeting, where a quarter-point rate cut is widely expected. Markets will watch for clues on the pace of future easing. Gold slipped 0.21% to USD 4,234.15, while silver rose 0.99% to USD 58.06 and copper gained 1.08% to USD 11,568.50. Brent crude inched up 0.09% to USD 63.32, supported by rate-cut expectations and rising geopolitical tensions. 

Our Stance: A recent analysis by the Centre for Economic Policy Research (CEPR) suggests that Brexit has led to a persistent and significant drag on the UK economy. The study found that by 2025, Brexit had reduced UK GDP by 6-8% compared to a scenario where the UK had remained in the EU.  

FTSE 100 

The FTSE climbed 19.41 points to 9,730.28 and continues to trade comfortably above the key support zone near 9,200, maintaining a broadly stable structure. The 21-day SMA at 9,684.63 remains below the index, signaling a mild positive bias, while the 50-day SMA at 9,600.71 reinforces broader stability with room for near-term consolidation. The RSI stays elevated with a slight downward tilt. Immediate support lies near 8,950, while resistance is placed at 10,000 and 10,120.  

Source - EODHD/Others