UK steady; global risk-on — AI $5T buzz, trade thaw, Fed-cut watch:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading up around 0.88% on 29 October 2025.  

Macro Update: Reform UK’s surge from anti-immigration/EU rhetoric is meeting a first governance test as it runs many local authorities, pledging cost cuts (inspired by Elon Musk–style efficiency) despite no prior governing experience and just five MPs—an outcome that could reshape national politics if delivery matches polling. Housing data were mixed: Bank of England figures showed September mortgage approvals at 65,944, the highest of 2025 and above forecasts, even as buyers brace for possible tax rises in the Nov. 26 budget and broader indicators signal caution. Meanwhile, the UK reported a 63% jump in arrests for illegal working (over 8,000, with 1,050+ removals), reflecting intensified enforcement as immigration remains a top voter concern. 

Top Market Movers: Among top gainers on FTSE 100 index, Next PLC (LSE: NXT) witnessed a rise of 7.42% followed by Fresnillo PLC (LSE: FRES) which gained around 6.98%. 

Commodity Update: The U.S. dollar held near a one-week low ahead of the anticipated Federal Reserve rate cut. Gold slipped 0.52% to USD 3,962.40 per ounce, silver fell 0.12% to USD 47.26, and copper eased 0.28% to USD 10,995.00. Brent crude gained 0.30% to USD 64.58 as renewed Israel-Hamas conflict raised supply concerns. Oil prices rebounded after two days of losses, supported by geopolitical tensions and fresh U.S. sanctions on Russia. 

Our Stance: Global risk tone looks cautiously upbeat: Trump and South Korea say their tariff-avoidance deal is “pretty much finalized” via $350bn in U.S. investments, and a potential Trump–Xi summit hints at modest de-escalation on China—while markets ride AI momentum as Nvidia nears $5T on $500bn chip bookings and plans for seven U.S. government supercomputers, nudging S&P/Nasdaq futures higher even as Europe sits flat ahead of a widely expected Fed 25 bp cut. Net take: policy signals and AI capex are supportive near term, but concentration risk in one mega-cap and still-uncertain deal mechanics argue for measured positioning until details and the Fed’s guidance land.  

FTSE 100 

The FTSE 100 gained 34.60 points to trade at 9,731.34, holding a firm position above key support at 8,900. The index remains comfortably above the 21-day SMA at 9,483.72 and the 50-day SMA at 9,340.05, highlighting a stable technical setup with room for short-term consolidation. The RSI, positioned in the overbought zone but within bullish territory, indicates a mildly positive bias. Immediate support is placed near 8,950, while resistance is seen around 9,800 and 10,000. 

Source - EODHD/Others