Global Markets Rallying Amid Ceasefire and Fed Cut Hopes:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.18% up on 09 October 2025.  

Macro Update: India and the UK reaffirmed the strength of their new trade partnership as Prime Minister Narendra Modi and his British counterpart Keir Starmer highlighted the deal’s potential to boost bilateral trade by £25.5 billion ($34 billion) by 2040, through tariff cuts on goods such as textiles, whisky, and cars. Lloyds Banking Group warned of potentially higher provisions for the UK’s £11 billion motor finance mis-selling scandal, while Bank of England’s Catherine Mann reiterated the need for prolonged restrictive policy to curb inflation. The FTSE 100 hit a record high of 9,548.87 (+0.7%), lifted by financial stocks and gold miners, as Lloyds, Barclays, and HSBC advanced alongside Fresnillo and Endeavour Mining, benefiting from gold prices surpassing $4,000/oz. 

Top Market Movers: Among top gainers on FTSE 100 index, Mondi PLC (LSE: MNDI) witnessed a rise of 3.86% followed by Anglo American PLC (LSE: AAL) which gained around 1.98%. 

Commodity Update: The dollar held firm on Thursday, heading for its best weekly performance in nearly a year, supported by a weakening yen following Japan’s political transition. Gold slipped 0.69% to $4,041.45, while silver fell 1.54% to $48.20. Copper gained 0.88% to $10,779.70. Brent crude declined 0.60% to $65.86 as U.S. President Donald Trump announced the first phase of an Israel-Hamas ceasefire, alongside rising U.S. crude inventories. 

Our Stance: Global sentiment remained mixed on Thursday as geopolitical, economic, and policy developments shaped market direction. A ceasefire and hostage deal between Israel and Palestine, brokered under U.S. President Donald Trump’s peace initiative, marked a tentative step toward ending the Gaza conflict, though tensions lingered amid continued airstrikes. The Federal Reserve minutes revealed growing concern about labor market weakness, hinting at a potential rate cut, even as inflation remains above target. In markets, European equities slipped, led by banks, as investors grew cautious about a potential correction following AI-driven rallies, while in the U.S., tech and semiconductor stocks pushed the Nasdaq and S&P 500 to record highs, underscoring continued optimism in AI despite the ongoing government shutdown.  

FTSE 100 

The FTSE 100 traded at 9,515.76, down 0.35%, but continues to hold firmly above key support at 8,900 and the 50-day SMA at 9,246.75. It also remains above the 21-day SMA at 9,330.90, indicating a stable structure with limited near-term upside and potential consolidation. The RSI, positioned in the overbought zone, reflects a mildly positive bias. Immediate support is seen at 8,950, while resistance levels are placed at 9,600 and 9,800. 

Source - EODHD/Others