EBC Markets Briefing | UK stocks regained footing amid sector rotation

Boosted by a rally in AstraZeneca and relief over a milder-than-expected budget, London's FTSE 100 ticked higher on Friday to secure its first monthly gain in three months.

European stock investors are zeroing in on the upcoming US midterm elections, as the results could heavily impact earnings across multiple sectors, especially healthcare.

Pharmaceutical companies are poised to benefit significantly if Democrats gain control of either chamber. That would help the stocks continue their recent outperformance against other parts of the market.

The FTSE 100 has the largest weighting of healthcare among major European stock indices. It has been outperforming so far this year amid defensive value pivot and soaring oil prices.

Combined with robust dividends, this shareholder return strategy underscores why UK stocks remain highly attractive to income seekers, according to Russ Mould, investment director at AJ Bell.

Chancellor John Healey delivered the autumn budget last week. Rather than a sweeping, radical overhaul, the package was widely categorized by economists as a cautious, steady-as-she-goes "micro-budget".

EBC Financial Group analyst says FTSE 100 has staged a powerful V-shaped rally back above its 50 SMA. A daily close above 10780 would open the door for a retest of the highs around 10,880.

Asset Recap

As of market close on 30 October, among EBC major products, ProShares UltraPro Short QQQ led gains as investors dumped big tech stocks following a slew of disappointing earnings.

Reddit shares plunged after CEO Steve Huffman warned that Google's AI-powered search features are cutting referral traffic and could shrink the platform's user base.

Gold price fell below $3,900 to its lowest level of 2026. Hawkish Fed bets explain much of the slide, but analysts disagree on how deep the correction could go.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.