Fed cut lifts equities, but UK debt and oil demand weigh on outlook:

Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.04% on 19 September 2025.

Macro Update: Britain’s fiscal outlook worsened as public sector borrowing between April and August reached £83.8 bn, overshooting official forecasts by £11.4 bn and marking the highest early-year deficit since 2020, creating added pressure on Finance Minister Rachel Reeves ahead of November’s budget. Meanwhile, retail sales surprised on the upside in August with a 0.5% monthly rise, led by clothing and department stores, though three-month volumes still slipped 0.1%. On the international front, U.S. President Donald Trump and UK Prime Minister Keir Starmer reaffirmed the “special relationship” during Trump’s second state visit, projecting unity despite underlying policy differences and sidestepping contentious topics at their closing press conference.

Top Market Movers: Among top gainers on FTSE 100 index, Endeavour Mining PLC (LSE: EDV) witnessed a rise of 2.45% followed by Fresnillo PLC (LSE: FRES) which gained around 2.23%.

Commodity Update: The U.S. dollar steadied in early Asian trade Friday, edging up against the yen ahead of the Bank of Japan’s policy decision, as markets sought fresh direction after the Federal Reserve’s rate cut. Gold rose 0.11% to $3,682.30, silver gained 0.65% to $42.38, and copper advanced 0.33% to $9,982.30. Brent crude slipped 0.12% to $67.36, pressured by concerns over U.S. fuel demand.

Our Stance: Global markets ended the week on a mixed but cautiously positive note, with Wall Street pausing after record highs fueled by Nvidia’s $5 bn Intel stake, FedEx’s upbeat earnings, and optimism around further U.S. rate cuts. The Fed’s 25 bps cut, its first since December, lifted risk sentiment, boosting small-caps in the U.S. and driving European equities higher, especially banks, autos, and tech, where SAP led gains. However, oil prices slipped as concerns over slowing demand offset hopes of stronger consumption from lower borrowing costs. Overall, the dovish Fed shift underpinned equities, but commodity and EM sentiment remained fragile amid global demand uncertainties.

FTSE 100

The FTSE 100 edged up 0.02% to 9,230.10, holding above key support at 8,900 and the 50-day SMA at 9,151.79. Despite the modest gain, it remains just below the 21-day SMA at 9,232.46, highlighting limited upside momentum and scope for consolidation. The RSI at 53.57 reflects a neutral to mildly positive tone, with immediate support at 8,950 and resistance levels at 9,500 and 9,800.

Source - EODHD/Others