Markets steady amid geopolitical tensions and banking sector concerns:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.34% on 20 October 2025.  

Macro Update: The UK housing market showed muted activity, with average asking prices rising just 0.3% in the four weeks to October 11—well below the seasonal norm of 1.1%—and down 0.1% year-on-year, as buyers await Rachel Reeves’ November budget amid uncertainty over potential property-related taxes. Meanwhile, the government launched the ‘Sterling 20’ initiative, uniting major pension funds such as L&G, Aviva, and M&G to channel billions into domestic infrastructure and housing projects. On the corporate front, AstraZeneca’s new breast cancer drug showed promising late-stage results, and Smiths Group agreed to sell its interconnect unit for £1.3bn. However, London’s FTSE 100 fell 0.9% for the week as banking stocks declined, reflecting global weakness in the financial sector. 

Top Market Movers: Among top gainers on FTSE 100 index, Babcock International Group PLC (LSE: BAB) witnessed a rise of 2.68% followed by Rolls-Royce Holdings PLC (LSE: RR.) which gained around 2.18%. 

Commodity Update: The U.S. dollar steadied on Monday as easing trade tensions between Beijing and Washington and reduced concerns over U.S. regional banks lifted risk appetite. Gold gained 1.27% to USD 4,268.70 per ounce, silver rose 1.30% to USD 50.28, and copper advanced 1.09% to USD 10,709.95. However, Brent crude slipped 0.40% to USD 61.05 per barrel amid persistent worries over a global supply glut and softer energy demand. 

Our Stance: Global markets opened the week on a mixed note amid heightened geopolitical tensions and financial uncertainty. U.S. President Donald Trump’s push for Ukraine to cede territory to Russia during a tense meeting with President Zelenskiy drew criticism and confusion, clouding prospects for a unified Western stance on the war. Investor sentiment was further rattled by credit losses and fraud allegations at U.S. regional banks such as Zions Bancorporation and Western Alliance, deepening fears of broader banking sector stress. Meanwhile, Tesla’s proposed $1 trillion pay package for Elon Musk faced renewed opposition from proxy advisers, raising governance concerns. In Asia, optimism lifted markets as Japan neared a new prime minister and China’s Q3 GDP rose 1.1%, exceeding forecasts, though property weakness and sluggish retail growth continued to weigh on its broader economic outlook.  

FTSE 100 

The FTSE 100 closed down 81.52 points at 9,354.57 but remains comfortably above key support at 8,900. The index slipped below the 21-day SMA at 9,380.53 while staying above the 50-day SMA at 9,282.65, indicating a stable technical structure with limited near-term upside and potential for consolidation. The RSI, moving lower within bullish territory, reflects a mildly negative bias. Immediate support is seen at 8,950, with resistance levels near 9,600 and 9,800. 

Source - EODHD/Others