Markets rise on U.S. shutdown hopes, UK investors cautious before budget:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.99% on 10 November 2025.  

Macro Update: The UK economic landscape remains mixed ahead of the November 26 budget. The Bank of England proposed allowing stablecoin issuers to hold up to 60% of reserves in short-term government debt, signalling a more flexible stance toward digital assets. Meanwhile, employer surveys show wage growth expectations of 3% but also rising concerns over AI-related job cuts and the potential impact of higher taxes on hiring. On the corporate front, private equity firm Permira agreed to acquire JTC for £2.3 billion, highlighting sustained PE interest in undervalued UK assets. Finance Minister Rachel Reeves is reportedly preparing personal tax increases to meet fiscal goals, while Halifax data showed house prices up 0.6% in October — the fastest rise since January — despite ongoing affordability pressures. 

Top Market Movers: Among top gainers on FTSE 100 index, DIAGEO PLC (LSE: DGE) witnessed a rise of 7.82% followed by FRESNILLO PLC (LSE: FRES) which gained around 4.93%. 

Commodity Update: The U.S. dollar held steady in early Asian trade as weak economic data fuelled global growth concerns, though hopes of a possible U.S. government deal limited safe-haven demand. Precious metals strengthened, with gold up 1.17% to USD 4,057.00, silver rising 1.99% to USD 49.07, and copper gaining 0.87% to USD 10,789.00. Brent crude increased 0.74% to USD 64.10 on expectations that a resolution to the U.S. shutdown could boost demand. 

Our Stance: The news out of Washington this week offered a cautious reprieve: the U.S. Senate advanced a bill to end the 40-day federal government shutdown by funding the government through January 30, while tying in a vote on Affordable Care Act subsidies in December—although the measure still needs full legislative passage and Presidential assent. The shutdown had triggered flight cancellations, delays in economic data releases and weighed on markets; equities rallied modestly on the signs of progress, oil prices popped on demand hope and emerging market equities also jumped. Net view: a potential reopening lifts a major overhang and could restore normalcy in data flows and investor sentiment, but uncertainty remains until the final bill is approved and the shutdown ends.  

FTSE 100 

The FTSE 100 rose 0.40% in early trade on Monday to 9,777.90, forming a bullish candlestick pattern on the daily chart. The index continues to hold well above a key horizontal support level, highlighting strong underlying momentum. Technical indicators remain positive, with prices trading comfortably above both the 21- and 50-period Simple Moving Averages (SMAs), which serve as dynamic support zones and signal sustained buying interest. The Relative Strength Index (RSI) at 66.43 indicates strengthening momentum and suggests a potential shift toward a deeper bullish bias. A decisive breakout above the immediate resistance zone would confirm the prevailing uptrend and open the path toward higher targets. Conversely, maintaining support at current levels is critical to preserving the bullish structure, while a drop below the moving averages could trigger a short-term corrective phase.