FTSE rises on truce hopes; UK capex lags

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.09% on 27 October 2025.  

Macro Update: Make UK reports manufacturers’ investment in plant and machinery has fallen to 6.8% of turnover (from 8.1% in 2024), the lowest since 2017, with R&D down to 6.2% as firms prioritise staff costs and training, prompting calls to refine tax incentives in the upcoming Budget. Politically, Lucy Powell won Labour’s deputy leadership 54–46 on a 17% turnout and urged a return to core progressive priorities after recent setbacks. On defence, PM Keir Starmer is set to discuss selling 40 Eurofighter Typhoons to Turkey, potentially delivering 12 used jets from Qatar and Oman first, followed by 28 new aircraft. Markets ended the week upbeat: the FTSE 100 closed at a record 9,645.62 and the FTSE 250 at 22,529.02, helped by cooler U.S. inflation data, expectations of a Fed rate cut, and hopes for easing U.S.–China trade tensions. 

Top Market Movers: Among top gainers on FTSE 100 index, Glencore PLC (LSE: GLEN) witnessed a rise of 2.33% followed by NatWest Group PLC (LSE: NWG) which gained around 1.71%. 

Commodity Update: The U.S. dollar strengthened to a two-week high against the yen on Monday amid a busy week of trade talks and central bank meetings. Gold slipped 1.27% to USD 4,084.30 per ounce, while silver eased 0.88% to USD 48.16. Copper rose 1.06% to USD 11,016.00, and Brent crude gained 0.70% to USD 66.40 after U.S.-China officials outlined a trade-deal framework, easing global growth concerns. 

Our Stance: Trump’s Asia tour and a draft U.S.–China truce—pausing further U.S. tariff hikes and China’s rare-earth curbs, plus fresh trade/critical-minerals MOUs—are lifting Asian equities to records, pushing U.S. futures higher, and keeping Europe near highs as gold and government bonds ease; at the same time, oil slips on skepticism that a framework deal will quickly boost demand, and some bond managers are trimming or shorting long duration even as markets price a 25 bp Fed cut to 3.75%–4.00%. Follow-through now hinges on an actual signing of the truce, the FOMC’s guidance and press-conference tone, and earnings delivering against elevated expectations; any disappointment on these fronts could unwind the latest bid for risk.  

FTSE 100 

The FTSE 100 edged up 3.00 points to trade at 9,6248.16, maintaining a steady position above key support at 8,900. The index remains above both the 21-day SMA at 9,466.36 and the 50-day SMA at 9,329.92, reflecting a stable technical structure with potential for short-term consolidation. The RSI, hovering in the overbought zone within bullish territory, suggests a mildly positive bias. Immediate support is seen at 8,950, with resistance levels placed at 9,600 and 9,800. 

Source - EODHD/Others