Geopolitical Talks and U.S. Inflation Spike Keep Global Markets on Edge:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.40% on 15 August 2025.  

Macro Update: Britain’s economy grew 0.3% in Q2 2025, beating the Bank of England’s and economists’ 0.1% forecast despite U.S. trade tariffs and a weaker jobs market, with June’s rebound across services, industry, and construction lifting sterling slightly. Ukrainian President Volodymyr Zelenskyy and UK Prime Minister Keir Starmer discussed security guarantees to secure lasting peace if U.S. diplomatic efforts with Russia succeed. Corporate updates included Shein’s UK sales up 32.3% to £2.05 bn in 2024, Aviva’s 22% rise in half-year operating profit and a higher interim dividend, and Eli Lilly’s planned 170% price hike for Mounjaro in the UK from September for private buyers. 

Top Market Movers: Among top gainers on FTSE 100 index, Admiral Group PLC (LSE: ADM) witnessed a rise of 5.41% followed by Aviva PLC (LSE: AV.) which gained around 3.22%. 

Commodity Update: The U.S. dollar hovered near multi-week lows Thursday as traders increased bets on a Federal Reserve rate cut next month. Gold rose 0.18% to $3,414.50, silver gained 0.42% to $38.76, and copper inched up 0.19% to $9,827.40. Brent crude climbed 0.43% to $65.91, rebounding from the prior session’s sell-off, with the upcoming Trump–Putin meeting adding risk premiums to the market. 

Our Stance: U.S. President Donald Trump and Russian President Vladimir Putin will meet in Alaska for their first face-to-face talks since Trump’s return to office, aiming for a Ukraine ceasefire as Putin offers a potential nuclear deal. The meeting comes amid skepticism from Kyiv and Europe, while U.S. inflation worries intensified after July’s Producer Price Index rose 0.9%, well above forecasts, driven by higher services and goods costs. The data has clouded prospects for a Federal Reserve rate cut and weighed on Asia-Pacific markets, as investors weigh geopolitical tensions against potential policy easing. 

FTSE 100 

The FTSE 100 closed at 9,177.24, up 0.13%, maintaining its position above the 21-day and 50-day SMAs, reinforcing a steady short-term uptrend despite facing consistent resistance. The 14-day RSI at 65.16 reflects strong momentum but signals a mild cooling, raising the possibility of a pullback toward 8,900. Holding above key supports would keep the outlook bullish, with potential consolidation paving the way for another upward attempt. 

FTSE 100 Technical Chart, Source - EODHD/Others