UK slowdown meets global volatility on U.S. risks:

                                                   Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.02% on 30 September 2025.  

Macro Update: Britain’s economy slowed in Q2 2025 with GDP growth easing to 0.3% from 0.7% in Q1, though annual growth to June was revised up to 1.4% and GDP per head rose 0.9%, posing challenges for Finance Minister Rachel Reeves ahead of the November 26 budget amid pressure for more tax hikes. GSK said CEO Emma Walmsley will step down after eight years, to be replaced by insider Luke Miels as the firm faces pipeline concerns and tariff risks. Shell highlighted LNG as its main growth driver, expecting demand to rise 60% by 2040 while scaling back renewables. London stocks gained, with the FTSE 100 up 0.2% and FTSE 250 up 0.9%, led by insurers, housing, and a 2.1% rise in GSK on leadership change optimism. 

Top Market Movers: Among top gainers on FTSE 100 index, Airtel Africa PLC (LSE: AAF) witnessed a rise of 2.59% followed by Rentokil Initial PLC (LSE: RTO) which gained around 2.56%. 

Commodity Update: The U.S. dollar weakened on Tuesday as investors grew cautious ahead of a possible government shutdown that could delay key economic data, including the jobs report. Gold rose 0.51% to $3,874.90, silver edged up 0.17% to $47.09, while copper slipped 0.72% to $10,367.70. Brent crude fell 0.50% to $67.65 on OPEC+ production hike concerns, while easing Gaza tensions reduced geopolitical risk premiums. 

Our Stance: Global developments highlight rising uncertainty as President Trump pushed a U.S.-backed Gaza peace plan with Israel’s support but uncertainty around Hamas acceptance keeps prospects fragile, while simultaneously escalating trade tensions with new tariffs on timber, lumber, and furniture imports under national security grounds. Markets reflected caution, with equities and the dollar under pressure, gold hitting record highs, and investors bracing for a potential U.S. government shutdown that could delay key jobs data and complicate the Federal Reserve’s policy path. Traders now expect further rate cuts, underscoring how geopolitical risks, protectionist trade moves, and fiscal gridlock are feeding volatility across global markets. 

FTSE 100 

The FTSE 100 is trading at 9,284.18, down 0.17%, but continues to hold above key support at 8,900 and the 50-day SMA at 9,191.95. It also remains slightly above the 21-day SMA at 9,233.73, indicating limited upside momentum and potential for consolidation. The RSI, positioned above the midpoint, reflects a neutral to mildly positive bias. Key support is seen at 8,950, while resistance is noted at 9,500 and 9,800. 

Source - EODHD/Others