FTSE 100 FINISH LINE 14/10/25
London stocks started Tuesday on a weak note, dragged down by declining mining shares as concerns over the economic impact of escalating U.S.-China trade tensions weighed on investors. However, sentiment improved by the end of the session, buoyed by a recovery in U.S. markets that helped the UK’s benchmark index edge back into positive territory. On Monday, markets had found some relief after U.S. President Trump adopted a more upbeat tone, using social media to reassure that "everything will be fine" and stressing that the U.S. had no intention of "hurting" China. Yet by Tuesday, tensions flared again as both nations imposed fresh tit-for-tat port fees on ocean shipping companies handling goods ranging from holiday products to crude oil. Industrial metal miners bore the brunt of the fallout, with their shares tumbling 2.1% due to falling copper prices. Among the biggest losers on the FTSE 100 were Anglo American, Glencore, and Rio Tinto, which suffered declines between 1.8% and 3.2%. Energy giant BP also faced headwinds, slipping nearly 2% after reporting underwhelming oil trading results. The aerospace and defence sector joined the downward trend, with its sub-index falling 1.9%, marking its fourth consecutive session of losses.
Adding to the mixed economic picture, data released on Tuesday showed a slight slowdown in British wage growth for the three months leading up to August. This development could provide the Bank of England (BoE) with some leeway to maintain its cautious stance on interest rate cuts, albeit at a measured pace. Last month, the BoE held rates steady at 4%, keeping a close eye on inflationary pressures, including wage trends. Market expectations currently point to the next rate cut happening by April 2026, according to data from LSEG.
The British homebuilders index saw a 2% boost following the UK government's announcement of significant reforms to the planning system, designed to fast-track housing construction. The changes, introduced as part of the Planning and Infrastructure Bill, aim to simplify the approval process for large-scale housing projects, aligning with the government's ambitious goal of constructing 1.5 million homes by 2029. Among the standout performers, Bellway surged 5%, leading the sub-index, while other major players like Persimmon, Berkeley, and Vistry recorded gains ranging from 1% to 1.9%. Bellway (BWY) and Persimmon (PSN) also emerged as top gainers on the FTSE 100 and FTSE mid-cap indices, respectively. Despite this recent uptick, the year-to-date performance of the homebuilders sub-index remains down by approximately 4%. In contrast, the broader FTSE 100 and FTSE mid-cap indices have climbed 15.3% and 7%, respectively.
Shares of British betting company Entain made a sharp turnaround, climbing 3% to 849.8p in today's trading. The company emerged as one of the top performers on London's FTSE 100 index. This boost comes as BetMGM, the U.S. sports betting platform co-owned by Entain and MGM Resorts, raised its revenue and profit forecasts for fiscal year 2025 for the third time this year. BetMGM now anticipates generating at least $2.75 billion in net revenue and approximately $200 million in EBITDA by FY25. Additionally, the platform expects to distribute a minimum of $200 million to its parent companies by the end of 2025. As of Monday's close, Entain's stock had already surged 20.05% since the start of the year, reflecting strong momentum in the market.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 9300
Primary support 9000
Below 9300 opens 9000
Primary objective 9600
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!