Global markets steady as trade and valuation concerns temper optimism:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.10% on 06 November 2025.  

Macro Update: The Bank of England faces a finely balanced decision Thursday, with most investors expecting no change to the base rate at 4.0% but a growing minority (about one-in-three) anticipating a cut to 3.75%—a marked shift from just a month ago. The rate-cut pause reflects mixed signals: inflation remains elevated at 3.8%, the highest among major advanced economies, but wage growth is weakening and job market slack is emerging. Meanwhile, the pound is under pressure as construction contracted sharply (PMI fell to 44.1 in October) and households await the outcome of the upcoming budget and possible tax rises. 

Top Market Movers: Among top gainers on FTSE 100 index, IMI PLC (LSE: IMI) witnessed a rise of 6.99% followed by J Sainsbury PLC (LSE: SBRY) which gained around 3.81%. 

Commodity Update: The dollar held near a three-month high on Thursday as markets reduced bets on a December rate cut by the Federal Reserve. Gold dipped 0.03% to USD 3,991.80 per ounce, silver declined 0.35% to USD 47.85, while copper rose 0.32% to USD 10,759.00. Brent crude inched up 0.03% to USD 63.54, recovering slightly after recent losses amid weak demand and persistent global oversupply concerns. 

Our Stance: The global trade and market environment is showing meaningful fault-lines: The U.S. Supreme Court of the United States challenged Donald Trump’s tariff authority under the IEEPA, suggesting a major proportion of his tariffs might be struck down—potentially unleashing fresh trade turmoil if alternative tactics are deployed. Meanwhile, China has begun tentative purchases of U.S. farm commodities after a leaders’ meeting, but full implementation remains uncertain and the 13% soybean tariff still stands. At the same time, U.S. equities rebounded sharply on strong earnings and economic data, though concerns over elevated tech valuations persist; European equities slid amid mixed earnings and a hawkish Fed stance. Net take: while optimism around trade easing and earnings is supporting markets, the underlying legal, policy and valuation risks caution against unbridled exuberance.  

FTSE 100 

The FTSE 100 slipped 6.78 points to trade at 9,770.40, yet continues to hold firmly above key support at 8,900. The index remains comfortably above both the 21-day SMA (9,579.31) and the 50-day SMA (9,407.83), indicating a stable technical structure with room for near-term consolidation. The RSI sits above the overbought threshold but still within bullish territory, reflecting a mildly positive undertone. Immediate support is placed near 8,950, while resistance is seen at 9,800 and 10,000. 

 Source - EODHD/Others