AI gains and Fed easing lift markets, UK faces tax and housing strains:

Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.22% on 10 September 2025.

Macro Update: Britain’s finance minister Rachel Reeves signaled reforms to business property taxes ahead of the November 26 budget, though concerns over inflation and possible tax hikes weigh on sentiment. John Lewis posted a deeper H1 loss of £33mn but expects FY profit growth, while RICS data showed the sharpest housing price declines in 18 months, reflecting weak demand and economic uncertainty. Energean cut its 2025 output forecast to 145–155k boepd after disruptions in Israel, reporting an 11% drop in EBITDAX to $505mn. Meanwhile, the FTSE 100 slipped 0.2%, led lower by consumer staples and industrials, with ABF tumbling 13.2% on weaker Primark outlook, while travel, leisure, and select tech and healthcare names also weighed on the index.

Top Market Movers: Among top gainers on FTSE 100 index, Bae Systems PLC (LSE: BA.) witnessed a rise of 4.64% followed by Compass Group PLC (LSE: CPG) which gained around 2.24%.

Commodity Update: The dollar steadied in early Asian trade Thursday after a surprise drop in U.S. factory-gate prices strengthened expectations of a Fed rate cut next week, with focus on U.S. CPI data later. Commodities saw mixed moves: gold slipped 0.19% to $3,675.10, copper eased 0.22% to $9,989.65, while silver gained 0.40% to $41.76. Brent crude edged up 0.10% to $67.50 as oversupply and weak U.S. demand capped geopolitical risks.

Our Stance: The S&P 500 and Nasdaq closed at record highs, boosted by cooler inflation data and a 36% surge in Oracle on AI cloud demand, strengthening expectations of a Fed rate cut next week. An AI-simulated FOMC study suggested political pressure can still sway policy debates, raising concerns over central bank independence. In Europe, shares edged higher ahead of the ECB’s decision, while oil held steady as geopolitical risks balanced oversupply concerns. The dollar softened on weaker U.S. producer prices, further supporting easing bets. Overall, markets remain cautiously optimistic, leaning on AI momentum and prospects of monetary easing.

FTSE 100

The FTSE 100 trades at 9,265.80, up 0.44%, sustaining levels above key support at 8,900 as well as the 50-day SMA at 9,096.57. The index is also positioned above the 21-day SMA at 9,212.42, though upward momentum remains capped, indicating consolidation. The RSI at 60.19 reflects a neutral bias. Support is placed at 8,950, with a breakdown likely to extend weakness, while resistance lies at 9,500, above which the index could target 9,800.

Source - EODHD/Others