UK Steady on Fiscal Plans; Global Sentiment Hit by U.S.-China Trade Tensions:

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading down around 0.31% up on 15 October 2025.  

Macro Update: Global markets remained volatile as the U.S. government shutdown disrupted key data releases, creating uncertainty for policymakers worldwide who rely on U.S. economic indicators to guide trade and currency decisions. President Trump reignited trade tensions by threatening to sever certain business ties with China over cooking oil imports, weighing on sentiment even as Wall Street posted mixed results—banks like Wells Fargo and Citigroup surged on strong earnings, while JPMorgan and Goldman Sachs dipped. Fed Chair Jerome Powell struck a cautiously dovish tone, acknowledging a fragile balance between inflation control and labor market weakness, which lifted global equities and emerging market assets amid rising hopes of further U.S. rate cuts. 

Top Market Movers: Among top gainers on FTSE 100 index, Burberry Group PLC (LSE: BRBY) witnessed a rise of 5.34% followed by Land Securities Group PLC (LSE: LAND) which gained around 3.28%. 

Commodity Update: The U.S. dollar weakened on Wednesday after Fed Chair Jerome Powell’s comments fueled expectations of an interest rate cut this month. Precious metals gained, with gold up 0.71% to $4,192.45, silver rising 1.07% to $51.15, and copper advancing 0.49% to $10,640.50. Brent crude slipped 0.19% to $62.27, extending losses amid the IEA’s supply surplus warning for 2026 and concerns over U.S.-China trade tensions impacting demand. 

Our Stance: Britain’s finance minister Rachel Reeves confirmed that the upcoming November 26 budget will include a mix of tax hikes and spending cuts to restore fiscal balance, with economists estimating around £30 billion ($40.1 billion) in revenue to be raised amid higher borrowing costs and weaker growth prospects. Meanwhile, PageGroup reported a slight decline in Q3 profit due to sluggish hiring in Europe, though Asian markets showed modest growth. The FTSE 100 closed 0.1% higher, supported by gains in consumer staples and homebuilders following government planning reforms, while global trade tensions between the U.S. and China continued to weigh on investor sentiment.  

FTSE 100 

The FTSE 100 slipped 0.16% to trade at 9,438.00 but continues to hold comfortably above key support at 8,900 and the 50-day SMA at 9,272.40. It also remains above the 21-day SMA at 9,364.29, indicating a stable technical setup with limited short-term upside and scope for consolidation. The RSI, positioned in bullish territory, suggests a mildly positive bias. Immediate support lies at 8,950, while resistance is seen near 9,600 and 9,800. 

Source - EODHD/Others