Markets pressured by politics, lifted by Fed hopes and UK healthcare:

                                                    Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, closed around 1.03% up on 01 October 2025.  

Macro Update: The UK made headlines on multiple fronts: the government reportedly ordered Apple to create a backdoor into its cloud storage for British users, despite Apple’s firm stance against weakening encryption; British manufacturing activity contracted sharply in September, with the PMI dropping to 46.2, reflecting weak domestic and export demand; BoE Governor Andrew Bailey called for widely used stablecoins to be regulated like banks, with depositor protections and reserve access; London’s FTSE 100 hit another record close at 9,446.43, up 1.03%, driven by an 8.7% surge in healthcare stocks led by AstraZeneca’s 11.2% jump following a U.S. drug price deal; and British lender Shawbrook is preparing to launch its long-awaited IPO, offering a boost to UK capital markets amid growing competition from overseas listings. 

Top Market Movers: Among top gainers on FTSE 100 index, AstraZeneca PLC (LSE: AZN) witnessed a rise of 11.34% followed by JD Sports Fashion PLC (LSE: JD.) which gained around 6.23%. 

Commodity Update: Asian currencies and the dollar were steady Thursday as markets weighed the risk of a U.S. government shutdown, firmer South Korean inflation, and Australia’s weak trade data. Gold slipped 0.25% to $3,887.70, silver fell 0.85% to $47.27, while copper gained 0.34% to $10,416.55. Brent crude rose 0.57% to $65.72 after three sessions of declines, supported by prospects of tighter sanctions on Russian oil despite oversupply concerns. 

Our Stance: Global markets are being shaped by a volatile mix of politics, policy, and data: President Trump escalated the government shutdown by freezing $26 billion in funding for Democratic-leaning states, signaling his intent to use fiscal leverage as a political weapon, while the Supreme Court set a January hearing on his unprecedented attempt to remove Fed Governor Lisa Cook, raising questions over central bank independence. At the same time, weaker ADP payroll data, showing job losses instead of growth, reinforced expectations of imminent Fed rate cuts, pushing Wall Street and Asian equities higher, led by healthcare and tech, while gold hovered near record levels and the dollar softened. The combination of political brinkmanship, legal challenges to institutions, and economic softness has deepened uncertainty but simultaneously fueled hopes of a looser monetary policy backdrop. 

FTSE 100 

The FTSE 100 closed at 9,446.43, up 1.03%, holding above key support at 8,900 as well as the 50-day SMA at 9,201.33 and the 21-day SMA at 9,252.15. This signal limited upside momentum and scope for consolidation. The RSI, positioned in overbought territory, reflects a mildly positive bias. Immediate support is seen at 8,950, while resistance levels are placed at 9,500 and 9,800, which will act as key hurdles for further gains. 

Source - EODHD/Others