Markets steadied as oil rose and investors eyed Tesla and tech earnings:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.98% on 22 October 2025.  

Macro Update: British inflation held steady at 3.8% in September, surprising markets and raising hopes of a Bank of England rate cut later this year ahead of Rachel Reeves’ November budget. Rio Tinto is reportedly exploring an asset-for-equity swap with Chinalco to cut the Chinese firm’s 11% stake, paving the way for buybacks and new deals. Barclays lifted its profit outlook and announced a £500 million buyback, sending shares up 4%, while Princes Group launched a £400 million IPO at a lower valuation of £1.16–1.24 billion amid weak UK market sentiment. Aberdeen Asset Management flagged continued outflows and a further £4.5 billion redemption by year-end. The FTSE 100 rose slightly, helped by Melrose and HSBC, though declines in gold and silver miners limited overall gains.. 

Top Market Movers: Among top gainers on FTSE 100 index, Barclays PLC (LSE: BARC) witnessed a rise of 4.96% followed by Persimmon PLC (LSE: PSN) which gained around 3.91%. 

Commodity Update: The U.S. dollar slipped in early Asian trade on Wednesday, retreating from a one-week high against the yen as a rebound in gold prices prompted portfolio rebalancing among safe-haven assets. Gold rose 0.44% to USD 4,126.59 per ounce, silver gained 1.00% to USD 48.18, and copper edged up 0.03% to USD 10,614.60. Brent crude climbed 0.29% to USD 61.50 amid supply risks, trade optimism, and U.S. reserve purchases. 

Our Stance: Global markets showed a cautious yet mixed tone as investors awaited key earnings and policy signals. Tesla is expected to post robust Q3 results, boosted by expiring U.S. EV tax credits, though margin pressure from cheaper Model 3 and Y trims and weakening global demand remain concerns. Despite these jitters, analysts noted that the U.S. equity rally still appears far from bubble territory, with the tech sector’s valuations well below late-1990s extremes. Meanwhile, gold prices rebounded after their sharpest drop since 2020, supported by safe-haven demand ahead of the CPI report, and oil prices rose nearly 2%, lifted by optimism over a potential U.S.–India trade deal that could reshape global crude flows.  

FTSE 100 

The FTSE 100 advanced 60.00 points to trade at 9,486.99, holding well above key support at 8,900. The index remains above both the 21-day SMA at 9,411.52 and the 50-day SMA at 9,301.53, reflecting a steady technical structure with potential for short-term consolidation. The RSI, positioned above the midpoint in bullish territory, suggests a mildly positive bias. Immediate support is seen at 8,950, with resistance at 9,600 and 9,800. 

Source - EODHD/Others