Markets Cautious Amid Fed Uncertainty and Mixed Global Signals:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.12% on 30 July 2025.  

Macro Update: Several major UK-listed firms posted mixed updates. HSBC’s 26% drop in H1 profit was driven by write-downs tied to China and Hong Kong, as it moved forward with a global retail banking restructure. Rio Tinto reported its lowest H1 profit in five years due to a 15% drop in iron ore prices, reducing its dividend. GSK beat Q2 expectations and raised its FY outlook, targeting £40bn+ in annual sales despite U.S. pricing pressure. Glencore’s copper output fell 26%, prompting a portfolio review and plans to cut $1bn in costs by 2026. Sainsbury’s sold its travel money unit to Fexco to sharpen its retail focus. Taylor Wimpey cut its profit forecast and posted a H1 loss amid UK housing affordability concerns. 

Top Market Movers: Among top gainers on FTSE 100 index, AstraZeneca PLC (LSE: AZN) witnessed a rise of 2.17% followed by GSK PLC (LSE: GSK) which gained around 1.93%. 

Commodity Update: The euro hovered near a one-month low on Wednesday, pressured by recent losses amid concerns over the U.S.-EU trade pact. Investors awaited key policy meetings from the Federal Reserve and Bank of Japan. Meanwhile, the U.S. and China agreed to extend their tariff truce. Gold edged up 0.06% to $3,383.40, silver rose to $38.31, copper climbed 0.13%, and Brent crude gained 0.19% to $72.65 amid supply concerns. 

Our Stance: Global markets remained cautious on Wednesday as investors awaited the Federal Reserve’s policy decision and key economic data, with U.S. futures largely flat and global stocks lacking direction. While U.S. GDP may show a rebound due to easing imports, analysts warned this masks underlying weakness in consumer spending and stalled business investment, compounded by trade distortions from protectionist policies. Sentiment was further restrained after lacklustre earnings from major Dow components and muted progress in U.S.-China trade talks. The dollar edged lower ahead of central bank meetings, offering slight support to gold prices, while currencies and bond yields remained steady amid geopolitical concerns and uncertainty over rate trajectories. 

FTSE 100 

The FTSE 100 is currently trading at 9,115.35, down 0.23%, yet holding above a key breakout level that now serves as support. It remains above both the 21-day and 50-day Simple Moving Averages, indicating a stable short-term trend. The Relative Strength Index (RSI) stands at 66.82, suggesting strong momentum, though some minor consolidation may occur. A pullback toward the 8,700 level could unfold as part of a healthy correction. Despite this, the overall technical structure remains intact, reinforcing the ongoing trend and suggesting that the index may resume its upward trajectory following any near-term pause or retracement. 

FTSE 100 Technical Chart, Source - EODHD/Others