UK House Price Growth Cools Ahead of Budget:

                                                       Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.97% up on 08 October 2025.  

Macro Update: Sterling weakened slightly against the dollar but gained versus the euro and yen on Wednesday amid lingering concerns over the UK economy and the upcoming budget, with investors wary of potential tax hikes and rising inflation expected to hit 4%. Meanwhile, Prime Minister Keir Starmer began a two-day visit to India to accelerate the implementation of a new trade deal aimed at boosting bilateral trade by £25.5 billion by 2040. The Office for National Statistics revised government borrowing lower by £3 billion after correcting a VAT data error, easing fiscal pressure slightly. Separately, Serica Energy trimmed its annual production guidance again following fresh operational setbacks at the Triton FPSO, marking another challenge in its output recovery efforts. 

Top Market Movers: Among top gainers on FTSE 100 index, Lloyds Banking Group PLC (LSE: LLOY) witnessed a rise of 3.27% followed by Antofagasta PLC (LSE: ANTO) which gained around 3.06%. 

Commodity Update: The U.S. dollar strengthened to a two-month high in early Asian trade Wednesday amid renewed concerns over a potential U.S. government shutdown, driving safe-haven demand. Gold rose 0.72% to $4,033.50, silver gained 1.47% to $48.21, while copper slipped 0.16% to $10,712.40. Brent crude advanced 0.70% to $65.91 as traders weighed mixed U.S. inventory data and an upcoming modest OPEC+ output hike in November. 

Our Stance: Global markets traded cautiously on Wednesday ahead of the release of the Federal Reserve’s September meeting minutes, as investors awaited clues on the pace and scale of potential rate cuts amid still-elevated inflation at 2.7%. Fed Governor Stephen Miran’s call for aggressive rate reductions has reignited debate over policy risks and economic slack. U.S. futures edged higher after recent declines, with traders parsing Fed commentary amid data delays from the ongoing government shutdown. Meanwhile, gold surged past $4,000 per ounce for the first time, driven by safe-haven demand and growing expectations of U.S. rate cuts. The dollar strengthened as the euro and yen extended losses on France’s political instability and Japan’s expansive fiscal stance, while Tesla’s newly launched low-cost EVs face stiff price competition in Europe’s saturated electric vehicle market.  

FTSE 100 

The FTSE is trading at 9,524.65, up 0.43%, maintaining its position above key support at 8,900 and the 50-day SMA at 9,238.69. It also holds above the 21-day SMA at 9,315.92, suggesting limited near-term upside and a possible phase of consolidation. The RSI, currently in the overbought zone, signals a mildly positive bias. Immediate support is placed at 8,950, while resistance levels are observed at 9,600 and 9,800, indicating a cautious yet stable market outlook. 

Source - EODHD/Others