Global markets rise on easing U.S.–China trade tensions and improving inflation outlook:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.52% on 20 October 2025.  

Macro Update: Britain’s defence minister John Healey plans to grant new powers allowing troops to shoot down unidentified drones near military bases amid rising Russian provocations, including recent airspace violations and cyber interference. Meanwhile, the government launched the “Sterling 20” initiative — a coalition of major pension funds pledging £2.6 billion to domestic infrastructure — to boost private investment and growth. On the corporate front, B&M shares plunged 16% after cutting its profit forecast due to unaccounted freight costs, while the FTSE 100 rose 0.6%, led by defence and mining stocks as trade tensions eased. However, housing market data showed continued sluggishness, with asking prices rising only 0.3% in October. 

Top Market Movers: Among top gainers on FTSE 100 index, Whitbread PLC (LSE: WTB) witnessed a rise of 2.71% followed by WPP PLC (LSE: WPP) which gained around 2.20%. 

Commodity Update: The dollar strengthened slightly against the yen on Tuesday as investors turned attention to political developments in Japan and the euro area, while U.S. credit risk worries persisted. Gold slipped 0.14% to USD 4,353.35 per ounce, silver declined 1.47% to USD 50.62, and copper rose 0.17% to USD 10,708.75. Brent crude dipped 0.10% to USD 61.00 per barrel, hovering near five-month lows amid supply glut and weak demand concerns. 

Our Stance: Global markets turned optimistic as U.S. President Donald Trump signaled progress toward a fair trade deal with China ahead of his meeting with President Xi Jinping, easing tensions over Taiwan and boosting Asian and U.S. equities. The Dow and Nasdaq surged as upbeat corporate earnings revived risk appetite, while the Nikkei hit record highs on Japan’s political clarity. Meanwhile, gold hovered near record levels amid safe-haven demand and expectations of further Fed rate cuts. However, the ongoing U.S. government shutdown and delayed economic data continue to cloud the Fed’s policy outlook, while Amazon’s temporary AWS outage briefly disrupted global internet services.  

FTSE 100 

The FTSE 100 gained 49.00 points to close at 9,403.57, remaining comfortably above key support at 8,900. The index is trading above both the 21-day SMA at 9,389.43 and the 50-day SMA at 9,288.80, signaling a stable technical setup with limited short-term upside and scope for consolidation. The RSI, positioned near the midpoint within bullish territory, indicates a mildly negative bias. Immediate support is placed at 8,950, while resistance lies near 9,600 and 9,800. 

Source - Refinitv