Rate cut hopes lift markets, oil stays pressured by geopolitical risks:

Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.22% on 10 September 2025.

Macro Update: Arm Holdings unveiled its next-generation Lumex chip designs optimized for AI on mobile devices, enabling performance across wearables and high-end smartphones without cloud reliance. In the UK, Finance Minister Rachel Reeves emphasized inflation control and fiscal discipline ahead of the November 26 budget, as inflation sits at 3.8% with a peak forecast of 4% before easing by 2027. Meanwhile, Anglo American and Teck Resources announced a $53bn merger to create Anglo Teck, the world’s fifth-largest copper miner, highlighting copper’s rising demand from EVs and AI applications. The FTSE 100 gained 0.2%, led by Anglo’s 9.1% surge and higher energy stocks, while Shell expanded its European presence with a 10-year LNG deal supplying Hungary 200 mcm annually from 2026.

Top Market Movers: Among top gainers on FTSE 100 index, DCC PLC (LSE: DCC) witnessed a rise of 3.38% followed by Prudential PLC (LSE: PRU) which gained around 2.56%.

Commodity Update: The U.S. dollar held firm on Wednesday ahead of key inflation data that could shape upcoming Federal Reserve rate decisions. In commodities, gold slipped 0.23% to $3,674.10, while silver rose 0.73% to $41.64 and copper inched up 0.06% to $9,934.20. Brent crude gained 0.70% at $66.92, supported by Middle East tensions after Israel struck Hamas targets in Qatar and reports of potential new U.S. sanctions on Russian oil buyers.

Our Stance: A U.S. federal judge’s decision to temporarily block President Trump’s attempt to remove Fed Governor Lisa Cook is a landmark challenge to the central bank’s political autonomy, reinforcing its independence. Simultaneously, Wall Street surged—S&P 500, Nasdaq, and Dow hit new record highs—on renewed expectations of imminent Fed rate cuts, fueled by a downward-revised payroll benchmark suggesting a weakening labor market. European markets also rallied, buoyed by strong corporate updates from companies such as Inditex and Novo Nordisk. Meanwhile, geopolitical tensions and energy security concerns—Israel’s strike in Qatar, drone activity over Ukraine, and U.S. sanctions against Russian oil buyers—lifted oil prices modestly, though oversupply fears capped gains.

FTSE 100

The FTSE 100 is trading at 9,228.56, up 0.08%, and remains above the key 8,900 support as well as the 50-day SMA at 9,086.79. It is also holding above the 21-day SMA of 8,910.41, though upside momentum appears limited. The RSI at 57.14 reflects neutral sentiment in line with ongoing consolidation. Support is placed at 8,950, with a break lower likely to invite further downside. Resistance sits at 9,500, and a move beyond this could open the path toward 9,800.

Source - EODHD/Others