Markets Today: UK Wage Growth Hits 3-Year Lows, Gold Retreats from Highs, FTSE 100 Eyes Gains. US Earnings Season Ahead

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Asia Market Wrap - Asian Shares Cautious

Most Read: USD/JPY Price Outlook: Key Levels, BoJ, and Political Risks

Asian stock markets showed mixed results on Tuesday, ultimately struggling to gain ground as optimism about potential US-China trade talks was offset by doubts about whether the two nations could reach a lasting agreement.

Initially, broader Asian indexes saw some gains, but those quickly faded to trade flat. A new front in the trade war opened as the US and China began imposing port fees on shipping firms.

Consequently, markets like Hong Kong's Hang Seng Index dropped 0.4%, and mainland Chinese blue-chip stocks slipped 0.1%.

However, some markets were boosted by company-specific news. Taiwan's market jumped 0.8% after a record performance by chipmaker TSMC, following an announcement that OpenAI would partner with Broadcom to create in-house AI processors.

In South Korea, the Kospi index gained 0.6% after Samsung Electronics reported surprisingly strong predicted operating profits for the third quarter, thanks to solid demand for traditional memory chips.

In contrast, Japan's Nikkei index fell 1.2% as the market reopened after a holiday.

UK Wage Growth Struggles

The rate at which UK workers' regular pay is increasing has slightly slowed down, marking the weakest growth in over three years, primarily due to slower raises in the private sector.

From June to August 2025, the average regular pay (not including bonuses) grew by 4.7% annually, a small drop from the previous period and exactly what market experts expected. This slowdown was entirely concentrated in the private sector, where wage growth fell from 4.7% to a four-year low of 4.4%.

In contrast, public sector wages actually accelerated, hitting 6.0% annual growth, partly because some pay raises were implemented earlier this year than last. Among different industries, the highest pay increases (after the public sector) were seen in wholesaling, retailing, and hospitality (5.9%), while the weakest were in finance and business services (2.9%). When accounting for inflation (meaning the real buying power of the wages), the growth was minimal, slowing to just 0.6%, which is the lowest real-terms gain since 2023.

The data today will only add to expectations of a December rate cut from the Bank of England (BoE).

European Session - European Stocks Struggle

European stock markets declined on Tuesday, reaching a two-week low, as fresh worries about the US-China trade conflict resurfaced and corporate news, specifically from French tire maker Michelin, weighed heavily on the market.

The overall STOXX 600 index fell by 0.6%. Investors were nervous after both the US and China began imposing new port fees on shipping companies, a move that signals an expansion of the trade war despite earlier hopes for talks.

This anxiety hit the miners sector the hardest, which fell by 2%.

The automakers sector also dropped 1.5%, largely due to Michelin, whose stock plunged 9.3% after the company cut its financial outlook for the entire year. Michelin blamed worse-than-expected sales and falling profit margins in the North American market.

Other related companies, like Germany's Continental and Italy's Pirelli, also saw their shares fall.

Bucking the trend, Swedish telecoms firm Ericsson soared 12.4% after it reported stronger-than-expected quarterly profits and downplayed the potential negative effects of the new US tariffs.

On the FX front, the U.S. dollar's strength was brief on Tuesday, as it weakened against many other major currencies.

Both the euro and the British pound (sterling) saw small gains against the dollar. Currencies often seen as a measure of investor risk appetite, the Australian dollar and the New Zealand dollar, both suffered heavy losses, dropping 0.63% and 0.5%, respectively.

In contrast, traditional safe-haven currencies, those investors turn to during times of uncertainty were gaining ground. The Swiss franc rose 0.2%, and the Japanese yen reversed its earlier losses to climb 0.3% against the dollar.

Currency Power Balance

Source: OANDA Labs

Oil prices saw a small increase on Tuesday, while the price of gold continued its record-breaking surge.

Oil gained slightly, with Brent crude rising 0.2% to $63.45 per barrel. This gain came after a report from OPEC (Organization of the Petroleum Exporting Countries) on Monday indicated a key shift in the oil market.

OPEC now expects the world's oil supply to closely match demand next year, mainly because the larger OPEC+ group is increasing production. This is a change from their previous forecast, which had predicted a shortage of oil in 2026.

Meanwhile, Gold showed no signs of slowing down, jumping another 1.1% to a new record of $4,179.00/oz.

For more on the movement of Gold prices, read Gold (XAU/USD) Price Eyes Acceptance Above $4100/oz on US-China Trade War Fears, Up 2% on the Day

Economic Calendar and Final Thoughts

Looking at the economic calendar, the European session will bring ZEW economic sentiment data from the Euro Area and Germany.

Later in the day markets will continue to keep an eye on trade deal development talks between the US and China before earnings season kicks off. We will hear from BlackRock, JPMorgan and Citi Group today before Central Bank speakers take the spotlight.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100 Index

From a technical standpoint, the FTSE 100 is trading just above a key support level provided by the 100-day MA around 9392.5.

A hold above this level of support could signal another bullish leg to the upside.

The period-14 RSI is currently below the 50 level which signals bearish momentum. A break back above 50 here could help the FTSE 100 push higher.

Immediate resistance rests around the 9500 handle before the swing high at 9590 comes into focus.

On the downside, support rests at 9392 before the 9357 and 9311 handles become areas of interest.

FTSE 100 Index Four-Hour Chart, October 14. 2025

Source: TradingView.com (click to enlarge)

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

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