UK fiscal clarity sought as markets weigh Fed caution:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 1.58% on 14 November 2025.  

Macro Update: Britain’s finance minister Rachel Reeves has reportedly dropped plans to raise income tax in this month’s budget, aiming to avoid a political backlash—but markets balked: sterling slipped to a 2½-year low against the euro and gilt yields jumped as investors questioned how fiscal targets will be met. The shift heightens pressure to find alternative revenue or spending cuts with “tens of billions” still needed to stay on track. Labour-market signals were mixed: recruiters reported the first uptick in demand for temp staff in over a year, though overall conditions remain soft. The backdrop is a jittery market mood ahead of November 26, with policy credibility and growth assumptions under close scrutiny. 

Top Market Movers: Among top gainers on FTSE 100 index, DCC PLC (LSE: DCC) witnessed a rise of 1.22% followed by Diageo PLC (LSE: DGE) which gained around 0.11%. 

Commodity Update: The dollar struggled to recover on Friday, heading for a weekly decline as traders awaited delayed U.S. data expected to reveal a softening economy. Gold inched up 0.30% to USD 4,205.75, while silver dipped 0.09% to USD 53.12. Copper was marginally higher at USD 10,909.40. Brent crude jumped 2.13% to USD 64.35 after a Ukrainian drone strike hit an oil depot in Russia’s Black Sea port of Novorossiysk, lifting supply concerns. 

Our Stance: While the U.S. has formally ended its longest-ever government shutdown, the fallout remains intense: crucial data gaps and deep political divisions mean the relief may be short-lived, not transformative. The funding package lacks strong checks to restrain executive spending, and does nothing to resolve expiring health subsidies, leaving structural risks unaddressed. Meanwhile, investors face fresh headaches: markets are down on disappointing tech rotation, and the odds of a December rate cut by the Federal Reserve have fallen below 50% as policymakers voice caution. Add in rising oil prices on geopolitical strain and elevated Treasury yields, and the message is clear: the shutdown may be over, but the uncertainty—and risk—is far from behind us.  

FTSE 100 

The FTSE 100 declined 101.78 points to trade at 9,705.90 but continues to hold comfortably above key support at 9,200. With the 21-day SMA at 9,677.71 and the 50-day SMA at 9,480.96, the overall structure appears stable, suggesting scope for near-term consolidation. The RSI remains elevated yet within bullish territory, reflecting a mildly positive bias. Immediate support is placed near 8,950, while resistance is positioned around 10,000 and 10,120.. 

Source - EODHD/Others