Markets balance geopolitical tension, Fed rate cut hopes, and mixed global data:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.09% on 01 September 2025.  

Macro Update: Britain’s economic and corporate updates reflected mixed signals. Manufacturing activity slipped back into contraction in August, with new orders hit by trade tensions, rising costs, and domestic tax hikes. Rolls-Royce denied reports of an IPO for its small nuclear reactor unit, maintaining focus on its £2.5bn government-backed program to build Small Modular Reactors. Nationwide reported a surprise 0.1% drop in August house prices, marking the third monthly fall since April amid stretched affordability. The CMA launched a probe into Greencore’s £1.2bn acquisition of Bakkavor, which could reshape the convenience food sector. Meanwhile, London equities fell for a fourth day, dragged by banking stocks after calls for a new tax on lenders, with NatWest, Lloyds, and Barclays among the notable decliners, weighing on the FTSE 100. 

Top Market Movers: Among top gainers on FTSE 100 index, Endeavour Mining PLC (LSE: EDV) witnessed a rise of 3.41% followed by Rolls-Royce Holdings PLC (LSE: RR.) which gained around 2.38%. 

Commodity Update: The U.S. dollar remained range-bound on Monday as investors awaited a series of key labour market data releases this week, which are expected to influence the scale of the Federal Reserve’s anticipated rate cut later this month. Gold rising 0.85% to $3,545.62, silver gaining 1.63% to $41.39, and copper edging slightly higher by 0.01% to $9,923.90. Brent crude slipped 0.36% to $67.25, as concerns over higher output and potential demand weakness from U.S. tariffs outweighed supply risks linked to escalating Russia-Ukraine airstrikes. 

Our Stance: Global markets face a tense backdrop as U.S. politics heat up, with President Trump accused by Illinois Governor Pritzker of potentially using federal enforcement to influence elections, while investors await a key U.S. labor report that could cement expectations for September Fed rate cuts. Asian shares traded mixed—Japan weighed by tech profit-taking but China supported by AI optimism—amid thin U.S. holiday trading. Oil gained ~1% on Russia–Ukraine supply concerns and a weaker dollar, while emerging markets showed divergence, with Indonesia buoyed by trade resilience and Thailand pressured by political turmoil. 

FTSE 100 

The FTSE 100 gained 0.36% on Monday to trade at 9,220.72, forming a bullish candlestick pattern on the daily chart. The index remains firmly above a key horizontal support level, underscoring strong underlying momentum. Technical signals are constructive, with the price holding comfortably above both the 21- and 50-period Simple Moving Averages (SMAs), which act as dynamic support zones and highlight sustained buying interest. The Relative Strength Index (RSI) at 57.55 reflects strengthening momentum and points to a potential shift toward deeper bullish sentiment. A decisive breakout above the immediate resistance zone would confirm the prevailing uptrend and open the way toward higher targets. On the downside, preserving support at current levels is essential to maintaining the bullish structure, while a breakdown below the moving averages could spark a near-term corrective phase.