Markets hold steady as global easing hopes and strategic ties offer cautious support:

Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.19% on 16 September 2025.

Macro Update: U.S. President Donald Trump’s state visit to Britain, welcomed with royal honours and economic discussions, aligns with Prime Minister Keir Starmer’s push to deepen transatlantic ties and attract strategic investments. A ‘Transatlantic Taskforce’ and Google’s £5bn investment—expected to create over 8,000 UK jobs—highlight the focus on strengthening economic cooperation. While UK payroll data shows a softer labour market, easing inflation concerns may support the BoE’s steady policy stance. Retail inflation has inched lower, though pressures persist, and Jaguar Land Rover’s production halt due to a cyberattack raises broader supply chain concerns. Markets remain cautiously optimistic ahead of the Fed and BoE policy decisions.

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 4.74% followed by Rio Tinto PLC (LSE: RIO) which gained around 2.11%.

Commodity Update: The U.S. dollar weakened on Tuesday as markets awaited the Federal Reserve’s expected policy easing. Gold prices touched a record before slipping 0.06% to $3,716.50. Silver dipped 0.11% to $42.91, and copper declined 0.53% to $10,112.00. Brent crude rose 0.30% to $67.63, extending gains amid Ukraine’s strikes on Russian oil facilities, which heightened supply concerns. Meanwhile, Russia launched a major assault on Zaporizhzhia after recent Ukrainian attacks.

Our Stance: The Trump administration is moving to curb China's global port influence by backing Western acquisitions, reflecting growing concerns over U.S. logistical vulnerability in future conflicts. At the same time, the Federal Reserve faces pressure from the executive branch to ease policy, with expectations of a 25 bps rate cut this week as labour market data softens. Market sentiment remains optimistic, supported by the Senate’s confirmation of Stephen Miran and the retention of Lisa Cook, which stabilizes Fed governance. Meanwhile, Ukrainian attacks on Russian refineries raise oil supply concerns, hinting at potential upside risks to crude prices. Overall, policy, geopolitics, and investor sentiment are aligning toward a cautiously optimistic global outlook.

FTSE 100

The FTSE 100 closed at 9,258.38, down 0.20%, but continues to hold above key support at 8,900 as well as the 50-day SMA at 9,124.68. It also trades above the 21-day SMA at 9,228.43, though upside momentum looks limited, indicating scope for consolidation. The RSI at 57.28 reflects a neutral to mildly positive bias. Immediate support is placed at 8,950, and a breakdown below this level could trigger further weakness. On the upside, resistance is at 9,500, with a breakout opening room for a move toward 9,800.

Source - EODHD/Others