FTSE 100 FINISH LINE 31/10/25
The UK stock market's benchmark index, the FTSE 100, is taking a hit on Friday, diving into negative territory, largely due to turmoil in the banking sector. After a remarkable nine-day winning streak, the index is set to end the day on a disappointing note. With no fresh economic data or earnings reports to energise the market, investors are adopting a cautious stance. Many are trimming their positions, wary of potential pitfalls ahead. The atmosphere is tense, as traders reassess their strategies amidst growing uncertainty. Market sentiment is decidedly jittery, and all eyes are on upcoming developments that could shift the tides. Will new economic indicators or corporate earnings reports provide the spark needed to revive confidence? Only time will tell, but for now, the FTSE 100 is feeling the pressure.
The Bank of England's November rate decision could be compelling for markets, as it may end the trend of quarterly cuts, but the outcome appears finely balanced. Gilt yields and the value of sterling have decreased following indications that UK inflation may have peaked. Additionally, speculation around the budget is intensifying, with rumours of more significant downgrades from the Office for Budget Responsibility (OBR) regarding productivity. Meanwhile, delays in US data have shifted attention to the upcoming ADP and ISM releases for insights into the labour market.
Data from the Nationwide Building Society revealed that UK house prices rose at a slower rate in October as buyers became more cautious ahead of the budget announcement. The monthly increase in house prices was 0.3% in October, down from a 0.5% rise the previous month, according to the report. However, this figure exceeded the expectation of no growth. Year-over-year, house price growth unexpectedly quickened to 2.4%, up from 2.2% in September, surpassing economists' predictions of a 2.3% annual increase.
In the latest updates from UK businesses, TT Electronics Plc has turned down three unsolicited takeover bids from private equity firm DBAY Advisors in the past three months. The most recent offer from DBAY valued the company at 130 pence per share. However, on Friday, the British company announced its preference for a higher bid of 155 pence per share from Swiss-based Cicor Technologies, which was revealed just a day earlier. Cicor's proposal comes with a 19% premium over DBAY’s latest offer, making it the more attractive option.
Meanwhile, Moonpig Group has named Catherine Faiers as its new Chief Executive Officer. Faiers, currently serving as Chief Operating Officer at Auto Trader, will take the reins of the online greeting card and gift retailer after Nickyl Raithatha steps down from the role. Moonpig had previously announced in June that Raithatha would be departing as CEO, paving the way for Faiers to lead the company’s next chapter.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 9704
Primary support 9500
Below 9600 opens 9500
Primary objective 9873
Daily VWAP Bullish
Weekly VWAP Bullish
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!