Risk-on on truce/Fed hopes; UK fiscal squeeze as prices ease:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.12% on 28 October 2025.  

Macro Update: Britain faces tighter fiscal room as the OBR is expected to cut its productivity forecast by 0.3pp, implying roughly £20bn extra borrowing by 2029/30, even as October retail data offered modest relief with shop prices -0.3% m/m (food -0.4%) and annual shop inflation easing to 1.0% while CPI held at 3.8%. Competitive pressures are building in telecoms, with BT weighing a low-cost mobile brand or MVNO deal amid fintech entrants. Industrial energy costs remain a key risk: Rio Tinto’s Tomago aluminium smelter may shut after 2028 without a viable power contract, with electricity >40% of operating costs. Markets paused after recent gains: London indices ended flat and HSBC flagged a $1.1bn Q3 provision from a Luxembourg appeal case, though the FTSE 100 hit records last week and the FTSE 250 reached near four-year highs on rising odds of upcoming BoE cuts. 

Top Market Movers: Among top gainers on FTSE 100 index, Airtel Africa PLC (LSE: AAF) witnessed a rise of 7.29% followed by Spirax Group PLC (LSE: SPX) which gained around 3.63%. 

Commodity Update: The dollar weakened on Tuesday ahead of major central bank meetings, with markets anticipating a U.S. rate cut and monitoring President Donald Trump’s Asia tour for progress on a trade deal with China. Gold slipped 0.47% to USD 4,004.10 per ounce, while silver rose 0.03% to USD 46.78 and copper edged up 0.15% to USD 11,031.00. Brent crude eased 0.10% to USD 65.59 as OPEC’s planned output hikes offset recent gains from U.S. sanctions on Russia and trade optimism. 

Our Stance: Amazon’s ~14,000 corporate layoffs (trimming pandemic-era over-hiring and simplifying layers to fund AI) underscore cost discipline just as a draft U.S.–China truce—pausing additional tariffs and rare-earth curbs—plus Big Tech earnings hopes propel global equities and U.S. futures toward new highs ahead of an expected Fed cut; bonds are firmer, the dollar eases, gold has slipped back below $4,000/oz after a sharp positioning shakeout, and oil is down a third session (≈2%) as traders debate the bite of Russia sanctions and potential OPEC+ supply—leaving sentiment better but contingent on an actual signed deal, the Fed’s guidance and press-conference tone, and earnings delivery versus elevated expectations.  

FTSE 100 

The FTSE 100  gained 5.28 points to close at 9,659.10, maintaining a firm stance above key support at 8,900. The index continues to trade above the 21-day SMA at 9,483.72 and the 50-day SMA at 9,340.05, indicating a stable technical setup with scope for short-term consolidation. The RSI, positioned in the overbought zone within bullish territory, reflects a mildly positive bias. Immediate support is placed near 8,950, while resistance is observed around 9,600 and 9,800. 

Source - EODHD/Others