Markets Steady as Fed, UK Inflation Dominate:

                                                             Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.28% on 17 September 2025.  

Macro Update: U.S. President Donald Trump began his unprecedented second state visit to Britain with full royal pageantry, including a carriage procession, gun salutes, and a Windsor Castle banquet, while questions around Jeffrey Epstein linger in the backdrop. The visit comes as UK inflation remained elevated at 3.8% in August, the highest among major advanced economies, delaying prospects for a BoE rate cut. On the corporate front, Anglo American and Codelco sealed a copper mining partnership in Chile expected to deliver $5bn in value and boost output, Barratt Redrow flagged FY26 housing market risks tied to the November budget despite £5.58bn in annual revenue, and GSK announced a $30bn U.S. investment in R&D and supply chain, highlighting cross-Atlantic life sciences collaboration. 

Top Market Movers: Among top gainers on FTSE 100 index, Marks & Spencer Group PLC (LSE: MKS) witnessed a rise of 4.41% followed by Admiral Group PLC (LSE: ADM) which gained around 2.91%. 

Commodity Update: The U.S. dollar hovered near four-year lows against the euro and a one-month low against the yen as markets awaited a widely expected 25-basis-point rate cut by the Fed. Focus shifts to Chair Powell’s comments for cues on the pace of easing, with 67.9 bps of cuts priced in for year-end. Gold slipped 0.14%, silver 1.28%, and copper 0.44%. Brent crude eased 0.10% after recent gains on Russian supply concerns. 

Our Stance: The global market mood is shaped by anticipation of the Fed’s policy move, balancing signs of a resilient economy with lingering risks. U.S. GDP is running above 3% with retail sales growing 5% and stocks at record highs, yet pressures from a cooling labor market, distorted housing supply, and sticky inflation above target reinforce expectations of a 25 bps rate cut. Meanwhile, oil prices eased after earlier gains linked to Ukrainian strikes on Russian energy assets, while the dollar rebounded slightly ahead of Powell’s guidance. Overall, markets remain buoyant but are bracing for how far the Fed can ease without undermining inflation control or financial stability. 

FTSE 100 

The FTSE 100 closed at 9,214.88, up 0.21%, holding firm above key support at 8,900 and the 50-day SMA at 9,139.61. It also remains above the 21-day SMA at 9,233.68, though limited upside momentum suggests scope for consolidation. The RSI at 51.87 signals a neutral to mildly positive bias. Immediate support lies at 8,950, with a break lower likely to invite weakness. Resistance is seen at 9,500 and then 9,800. 

Source - EODHD/Others