AI and Fed bets boost U.S. focus:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.34% on 25 September 2025.  

Macro Update: The UK market tone was mixed on Thursday as BoE policymaker Megan Greene cautioned that inflation risks remain tilted to the upside, stressing the need for a measured approach to rate cuts despite signs of labour market softening. Petershill Partners announced plans to delist from the LSE and return $4.5bn to shareholders, underscoring persistent challenges in London’s listings environment. Mitchells & Butlers reported a 3.1% rise in Q4 like-for-like sales, driven by resilient mid-market demand and efficiency gains, & HSBC highlighted innovation with a quantum computing pilot run with IBM that improved bond trade prediction accuracy by 34%, marking one of the first tangible benefits of the technology in finance. The FTSE 100 ended 0.3% higher, led by miners as copper prices hit a 15-month high and by defence stocks, which gained after Trump’s remarks suggesting Ukraine could reclaim occupied territory. 

Top Market Movers: Among top gainers on FTSE 100 index, Rio Tinto PLC (LSE: RIO) witnessed a rise of 2.81% followed by Beazley PLC (LSE: BEZ) which gained around 2.42%. 

Commodity Update: The U.S. dollar was steady on Thursday, holding its overnight gains, as traders weighed the prospect of a measured Fed easing cycle in the wake of a cautious tone from policymakers while awaiting data that may outline the impact of tariffs. Gold surged 0.02% to $3,768.50, silver advanced 0.17% to $44.26, and copper eased 0.14% to $10,357.05. Brent crude fell 0.30% to $69.09 after hitting seven-week highs, as a surprise decline in U.S. crude inventories added to signs of tighter supply, while heightened geopolitical tensions over Russia kept a risk premium in the market. 

Our Stance: Global markets turned cautious as investors weighed optimism against valuation and policy risks. Fund managers who had shifted to Europe and Asia returned to Wall Street on AI momentum and Fed rate cut hopes, helping U.S. stocks rise 7% last quarter. Still, Fed Chair Jerome Powell’s warning on stretched valuations sparked profit-taking and a two-day equity pullback. Apple added pressure in Europe by calling for repeal of the Digital Markets Act, though regulators stood firm. Global shares stalled ahead of key Fed speeches and inflation data, while oil prices eased from seven-week highs as profit-taking and the return of Kurdish supplies offset recent U.S. inventory draws. 

FTSE 100 

The FTSE 100 traded at 9,230.08, down 0.22%, but continues to hold above key support at 8,900 and the 50-day SMA at 9,174.04. It remains slightly above the 21-day SMA at 9,221.43, reflecting limited upside momentum and scope for consolidation. The RSI near the midpoint suggests a neutral to mildly positive bias. Support is placed at 8,950, while resistance levels are seen at 9,500 and 9,800. 

Source - EODHD/Others