Global Markets Slip Amid U.S.-China Trade Tensions and Fed Rate-Cut Signals:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.34% up on 14 October 2025.  

Macro Update: BP forecasted a rise in upstream production for Q3, reversing its earlier outlook for a decline, supported by higher oil and gas output from U.S. onshore fields, though weaker oil trading and lower gas prices weighed on performance. In the UK, wage growth slowed to 4.7%, the weakest since 2022, and unemployment edged up, fueling expectations of an earlier Bank of England rate cut. Meanwhile, grocery inflation climbed to 5.2% amid rising food prices, while Bellway raised its dividend and announced a £150mn buyback after strong annual profits but warned of affordability challenges. In contrast, shares of Morgan Advanced Materials plunged nearly 14% after it projected lower annual sales due to weak semiconductor demand and sluggish European industrial activity. 

Top Market Movers: Among top gainers on FTSE 100 index, Entain PLC (LSE: ENT) witnessed a rise of 3.81% followed by Easyjet PLC (LSE: EZJ) which gained around 3.62%. 

Commodity Update: The dollar remained steady on Tuesday as U.S. President Donald Trump’s softer stance on China tariffs and the prospect of a meeting with his Chinese counterpart lifted hopes of easing trade tensions. Gold rose 0.73% to $4,163.30, silver advanced 2.08% to $51.48, while copper slipped 0.58% to $10,757.40. Brent crude gained 0.28% to $63.50, supported by improved sentiment over potential U.S.-China trade de-escalation. 

Our Stance: Renewed U.S.-China trade tensions unsettled global markets on Tuesday after both nations began imposing new port fees on shipping firms, escalating their economic confrontation. The move follows China’s expanded rare earth export controls and U.S. threats of steep tariffs, raising fears of a deeper trade war despite recent diplomatic reassurances. U.S. stock futures dipped and global equities weakened as investors turned to safe havens like gold and bonds. Meanwhile, Federal Reserve officials, including Philadelphia Fed President Anna Paulson, signaled potential rate cuts amid rising labor market risks and muted inflation pressures. Attention now shifts to upcoming U.S.-China talks and Fed Chair Jerome Powell’s remarks for clarity on trade and monetary policy direction.  

FTSE 100 

The FTSE 100 is trading at 9,421.60, down 0.23%, yet continues to hold firmly above key support at 8,900 and the 50-day SMA at 9,265.87. It also remains above the 21-day SMA at 9,351.27, reflecting a steady technical setup with limited short-term upside and potential for consolidation. The RSI, positioned in the bullish territory, indicates a mildly positive bias. Immediate support is placed at 8,950, while resistance is observed near 9,600 and 9,800. 

Source - EODHD/Others