Markets Balance Policy Uncertainty and Geopolitical Risks as Fed Easing Nears:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.02% on 15 September 2025.  

Macro Update: The week ahead is shaping up to be pivotal for UK markets and broader economic policy. The Bank of England is expected to slow the pace of its £100bn annual gilt sales while holding rates steady, amid heightened bond market volatility. Meanwhile, the UK is preparing for a high-profile state visit from U.S. President Donald Trump, during which both nations plan to sign agreements on civil nuclear energy and technology, with Britain aiming to secure favourable tariff terms on steel and aluminium. Alongside this, the government announced over £1.1bn in joint public–private investment in the maritime sector, focused on jobs, green technology, and emissions cuts. Sterling strengthened against the dollar and euro ahead of central bank decisions in the U.S., Japan, Canada, and Norway, with investors widely expecting the Fed to cut rates while the BoE stands pat. 

Top Market Movers: Among top gainers on FTSE 100 index, J Sainsbury PLC (LSE: SBRY) witnessed a rise of 5.01% followed by Centrica PLC (LSE: CNA’) which gained around 2.84%. 

Commodity Update: The dollar remained steady on Monday ahead of key central bank decisions, led by the Federal Reserve. The euro showed little reaction to Fitch’s downgrade of France’s credit rating. In commodities, gold slipped 0.21% to $3,678.90, silver eased 0.02% to $42.82, while copper edged up 0.25% to $10,097.25. Brent crude dipped 0.01% to $67.02 as markets weighed Ukrainian drone strikes on Russian refineries and U.S. fuel demand growth. 

Our Stance: China’s finding that Nvidia may have broken anti-monopoly rules—especially relating to its Mellanox acquisition—adds another regulatory hurdle for the chip giant and highlights increasing geopolitical risk in the tech sector. Meanwhile, the U.S. Federal Reserve faces an inflection point: pressure to ease is mounting amid labor market softness, hotter inflation, and leadership uncertainty caused by moves to remove Fed Governor Lisa Cook. Oil prices inched higher, propped up by geopolitical disruptions from Ukrainian drone attacks, underscoring that supply risks remain a wild card. Overall, the markets appear to be adjusting to a mix of policy uncertainty, regulatory risk, and quieter economic momentum—with investor expectations now leaning heavily toward imminent monetary easing. 

FTSE 100 

The FTSE 100 traded at 9,280.51, down 0.03%, yet holding above key support at 8,900 and the 50-day SMA at 9,124.68. It also remains above the 21-day SMA at 9,228.43, though upside momentum appears limited, suggesting consolidation. The RSI at 60.46 signals a neutral to mildly positive bias. Immediate support is seen at 8,950, with a breakdown likely to invite further weakness, while resistance lies at 9,500, above which a move toward 9,800 is possible. 

Source - EODHD/Others