Global Gains Amid Rate Cut Hopes; UK Markets Lifted by Earnings and BoE Expectations:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.50% on 05 August 2025.  

Macro Update: UK business sentiment remained mixed as services firms saw the biggest drop in new orders since 2022 and the sharpest staffing cuts in six months, adding pressure on the Bank of England ahead of an expected rate cut to 4%. BP announced a strategic review of its oil and gas assets and further cost cuts after beating Q2 expectations, while Spectris accepted a £4.8bn bid from KKR, dropping Advent’s offer. Equities rose on upbeat earnings from Diageo and Smith+Nephew and hopes of policy easing. Boris Johnson’s visit to Taiwan stirred diplomatic tension with China, Tesla’s UK sales slumped nearly 60% in July, and Domino’s cut its profit forecast, citing rising labor costs and weaker demand. 

Top Market Movers: Among top gainers on FTSE 100 index, Smith & Nephew PLC (LSE: SN.) witnessed a rise of 15.26% followed by Fresnillo PLC (LSE: FRES) which gained around 4.74%. 

Commodity Update: The U.S. dollar fluctuated on Tuesday amid growing expectations of Federal Reserve rate cuts following the release of a weak U.S. jobs report. Investor sentiment was further pressured by concerns over the broader economic impact of recently imposed U.S. tariffs. Gold edged up 0.08% to $3,429.10, silver rose 0.35%, copper added 0.12%, while Brent crude slipped 0.10% to $68.72, stabilising after recent losses driven by increasing supply and demand concerns. 

Our Stance: Global market sentiment stayed positive as Wall Street futures extended gains, fueled by rising expectations of a U.S. Federal Reserve rate cut in September following weak July jobs data and downward revisions. Global equities and emerging market stocks rose for a second day, while the dollar steadied and gold held near a one-week high. The Fed’s policy outlook gained momentum after Governor Adriana Kugler’s resignation, possibly paving the way for a more dovish successor. Euro zone bond yields held steady amid improving business activity, while oil prices dipped on rising OPEC+ supply and demand concerns, alongside renewed U.S.-India trade tensions over Russian oil. 

FTSE 100 

The FTSE 100 is trading at 9,156.92, up 0.31%, maintaining its position above a key breakout area that now serves as support. The index remains above both the 21-day and 50-day Simple Moving Averages, reflecting a stable short-term upward trend. The RSI stands at 63.62, suggesting building momentum, although some near-term consolidation cannot be ruled out. A temporary dip toward the 8,900 level may occur, but the overall technical structure continues to point toward potential for further gains following consolidation. 

FTSE 100 Technical Chart, Source - EODHD/Others