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The FTSE 100, the UK’s leading stock index, kicked off the week with gains on Monday, fuelled by impressive performances in industrial and mining stocks as easing trade tensions lifted investor sentiment. However, homebuilders faced headwinds following a survey that highlighted stagnant housing prices. Optimism from Friday’s positive close on Wall Street spilt over into the markets, as investors found reassurance in U.S. President Donald Trump’s remarks on China and encouraging quarterly reports from regional banks, which helped temper concerns over credit risks. Trump’s comment that a proposed 100% tariff on Chinese goods would be unsustainable provided some relief, calming fears of escalating trade disputes between the world’s two largest economies.
In the UK, aerospace and defence stocks showed strength, climbing 1.9% in tandem with gains seen across Europe. Leading the charge were Babcock and Rolls-Royce, which surged 2.4% and 2%, respectively, cementing their positions as top performers within the FTSE 100. Precious metal miners also enjoyed a modest lift, advancing 0.7% as gold prices edged higher. The banking sector began to recover, with the banks index ticking up 0.4%, following recent global sell-offs triggered by concerns over credit quality in U.S. regional banks.
Not every sector joined the rally, however. Homebuilders struggled, with their index sliding 1.5%. Data from property website Rightmove revealed that asking prices for UK homes rose just 0.3% in the four weeks leading up to October 11—a figure far below the typical seasonal growth seen in autumn before the Christmas slowdown. Persimmon led the declines among FTSE 100 homebuilders, tumbling 2.2%, while Barratt Redrow followed close behind, shedding 1.9%. Other housing stocks also faltered: Bellway slipped 1.6%, Vistry dropped 1.2%, Taylor Wimpey fell 1.9%, and Berkeley Group Holding declined 1.3%. The housing sector clearly bore the brunt of subdued market conditions, reflecting broader challenges in the property market.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 9330
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!