FTSE 100 Posts Modest Gains Amid Stable Technical Outlook:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.20% on 13 August 2025.  

Macro Update: The UK economy continues to navigate a period of moderate adjustment, with growth remaining subdued amid lingering inflationary pressures. Recent data suggests that while headline inflation has eased compared to its peak in previous years, core inflation remains somewhat persistent, particularly in services. The Bank of England has maintained a cautious stance, keeping interest rates steady for the time being, as it seeks clearer signs that inflation is on a sustainable path back to target. Labour market dynamics are showing tentative signs of softening, with vacancies edging down and wage growth gradually decelerating, though still elevated relative to historical norms. 

Top Market Movers: Among top gainers on FTSE 100 index, Spirax Group PLC (LSE: SPX) witnessed a rise of 2.78% followed by AstraZeneca PLC (LSE: AZN) which gained around 2.29%. 

Commodity Update: The dollar weakened on Wednesday after soft U.S. inflation data fueled expectations of a Fed rate cut next month, while President Trump's political moves further pressured the currency. Gold rose 0.12% to $3,402.90, silver gained 0.59% to $38.22, and copper edged up 0.06% to $9,834.55. Brent crude was flat at $66.15 after a prior drop, as rising U.S. crude stockpiles signaled the summer demand season’s end. 

Our Stance: On the fiscal front, the government appears to be treading carefully ahead of the next general election, balancing near-term support for households with longer-term fiscal sustainability considerations. Public sector borrowing has come in slightly higher than expected, driven in part by ongoing spending commitments and softer tax receipts. Consumer sentiment has been relatively flat, with households remaining cautious in the face of cost-of-living pressures and high borrowing costs. Business investment, while improving marginally, remains sensitive to global demand conditions and domestic policy clarity. Overall, the macro landscape suggests a slow but steady recalibration rather than a pronounced shift in momentum. 

FTSE 100 

The FTSE 100 gained 0.15% to close at 9,161.42, staying above its 21-day and 50-day SMAs, signalling a steady short-term uptrend despite facing repeated resistance. The 14-day RSI at 63.81 indicates healthy momentum, though slight moderation points to the possibility of a pullback toward 8,900. The overall technical setup remains constructive, and if key supports are maintained, the index may consolidate before attempting further upside within the existing trend. 

FTSE 100 Technical Chart, Source - EODHD/Others