Fed policy cues and Ukraine talks shape market sentiment:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.18% on 18 August 2025.  

Macro Update: British markets were marked by sharp sector moves and contrasting developments. Tesla faced pressure in the UK, with lease prices slashed by up to 40% amid storage constraints and a 60% drop in July sales, while house asking prices declined 1.3% in the latest four-week period, though July sales hit their highest since 2020. Standard Chartered plunged nearly 9% after a U.S. lawmaker called for a sanctions probe, dragging the FTSE 100 down 0.4%, led by financials, despite a record intraday high. Meanwhile, political tensions rose as a British councillor was acquitted of inciting violent disorder during last year’s riots, sparking criticism over a perceived “two-tier” justice system. 

Top Market Movers: Among top gainers on FTSE 100 index, Babcock International Group PLC (LSE: BAB) witnessed a rise of 5.73% followed by Endeavour Mining PLC (LSE: EDV) which gained around 4.51%. 

Commodity Update: The dollar steadied on Monday as markets awaited a key meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy. At the same time, attention also turned to the Federal Reserve’s Jackson Hole symposium for policy signals. Precious metals firmed, with gold up 0.20% at $3,389.20, silver rising 0.24% to $38.07, and copper adding 0.14% to $9,779.80. Brent crude slipped 0.40% to $65.62 as supply concerns eased. 

Our Stance: Global attention is split between high-stakes diplomacy and monetary policy signals. Ukrainian President Volodymyr Zelenskiy and European leaders are meeting Donald Trump in Washington to push back against pressure for a Moscow-favoured settlement, following Trump’s recent outreach to Vladimir Putin. Markets are meanwhile focused on the Federal Reserve’s Jackson Hole symposium, where mixed inflation and labour data have left uncertainty around the path of rate cuts. Bond yields and currencies remain steady as investors weigh the geopolitical risks of a potential Ukraine deal alongside expectations for Powell’s policy message, which could either reinforce or temper hopes for rate easing and its impact on global equities. 

FTSE 100 

The FTSE 100 edged up 0.01% to 9,139.72, trading above the key support level of 8,900 but still below its 50-day SMA of 8,960.50. The RSI at 59.37 indicates the index remains in a bullish zone, though consolidation persists. Immediate support is placed at 8,950, and a breakdown could accelerate downside pressure. On the upside, resistance lies near 9,230, and a sustained move above this level may open the path for a short-term recovery toward the 9,500 mark. 

FTSE 100 Technical Chart, Source - EODHD/Others