London Stocks Gain Despite Political Uncertainty:

                                                  Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.56% on 29 September 2025.  

Macro Update: Recent political developments in the United Kingdom have stirred unease in financial markets, with speculation surrounding Prime Minister Keir Starmer's leadership contributing to fluctuations in gilt yields and a dip in the pound. Despite being only a year into office, both Starmer and Chancellor Rachel Reeves are under increased scrutiny. Analysts note that while Reeves has faced early challenges, her dedication to fiscal discipline remains credible, although some market participants would prefer a greater cushion within her fiscal framework. The underlying market tension appears linked to concerns that potential leadership rivals may pursue more expansionary fiscal policies, which could increase borrowing. 

Top Market Movers: Among top gainers on FTSE 100 index, Antofagasta (LSE: ANTO) witnessed a rise of 4.61% followed by JD Sports Fashion PLC (LSE: JD.) which gained around 3.12%. 

Commodity Update: The dollar eased on Monday ahead of upcoming U.S. economic releases that may clarify the Federal Reserve’s rate direction, while concerns about a potential government shutdown intensified. Gold gained 0.38% to $3,820.00, silver rose 0.23% to $46.76, and copper advanced 0.70% to $10,283.50. Brent crude fell 0.90% to $69.50 after Iraq’s Kurdistan restarted exports via Turkey and OPEC+ prepared for a fresh output increase in November. 

Our Stance: With the Labour Party conference approaching and a budget announcement on the horizon, markets are unlikely to find immediate clarity. Any demonstration of strong leadership from Starmer could provide temporary reassurance, but ongoing internal tensions may keep volatility elevated. On the global front, reports indicate that OPEC+ may be preparing to raise oil production once again, adding to a trend of supply increases through 2025. If supply continues to rise faster than demand, as the International Energy Agency has warned, this could lead to an oversupplied market by 2026—introducing additional variables for investors to weigh alongside domestic political developments. 

FTSE 100 

The FTSE 100 is trading at 9,334.49, up 0.53%, while holding above key support at 8,900 and the 50-day SMA at 9,186.82. It remains slightly above the 21-day SMA at 9,230.76, suggesting limited upside momentum and scope for consolidation. The RSI above the midpoint indicates a neutral to mildly positive bias. Immediate support lies at 8,950, with resistance levels placed at 9,500 and 9,800. 

Source - EODHD/Others