Global markets dip on U.S. bank stress; UK remains cautious ahead of data:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 1.04% on 17 October 2025.  

Macro Update: Man Group’s shares climbed 2.6% to a six-month high after reporting a 22% YoY rise in AUM to a record $213.9bn, surpassing forecasts of $201.7bn, supported by $10bn in investment performance and broad growth across new areas like credit strategies. Meanwhile, AI-driven investment trends are beginning to influence European currencies, with the Swedish krona and British pound showing resilience due to stronger tech exposure. Additionally, Smiths Group announced the £1.3bn sale of its Interconnect division to Molex, streamlining its focus on industrial technologies, while London markets ended mixed as investors weighed sluggish GDP growth (+0.1%), fiscal concerns, and upcoming UK inflation data that could influence the BoE’s next rate move. 

Top Market Movers: Among top gainers on FTSE 100 index, Pearson PLC (LSE: PSON) witnessed a rise of 4.43% followed by Smiths Group PLC (LSE: SMIN) which gained around 2.54%. 

Commodity Update: The U.S. dollar weakened on Friday amid rising global trade tensions and signs of economic softness, boosting expectations of further Federal Reserve rate cuts. The dollar index is heading for its steepest weekly decline in nearly three months as the U.S. government shutdown delays key data releases. Gold rose 1.57% to USD 4,372.49 per ounce, silver edged up 0.02% to USD 53.29, copper slipped 0.62% to USD 10,571.75, and Brent crude eased 0.13% to USD 60.98 per barrel. 

Our Stance: Deepening credit stress across U.S. regional banks, including heavy losses in Zions Bancorporation, Western Alliance, and Jefferies following loan write-downs and fraud allegations, triggered a global market selloff as investors grew wary of hidden risks within the financial system. The banking sector’s weakness, combined with ongoing U.S.-China trade tensions and renewed geopolitical uncertainty after President Trump and Putin’s planned Ukraine summit, heightened risk aversion. Meanwhile, Federal Reserve officials signaled a possible 25-basis-point rate cut later this month amid a softening labor market, adding to expectations of further monetary easing. As a result, investors flocked to safe-haven assets like gold, while global equities and bank stocks saw widespread declines, reflecting a shift toward caution amid growing financial and geopolitical instability.  

FTSE 100 

The FTSE 100 declined by 130.14 points to trade at 9,305.95, yet continues to hold comfortably above key support at 8,900 and the 50-day SMA at 9,281.68. It also remains above the 21-day SMA at 9,378.21, suggesting a stable technical structure with limited near-term upside and potential for consolidation. The RSI, slipping within bullish territory, reflects a mildly negative bias. Immediate support is located at 8,950, while resistance is positioned near 9,600 and 9,800. 

Source - EODHD/Others