Trump’s Fed Nomination, Tariff Tensions, and Rate Cut Bets Keep Global Markets on Edge:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.06% on 08 August 2025.  

Macro Update: CureVac and GSK have settled a long-running mRNA vaccine patent dispute with Pfizer and BioNTech, securing $740 mn plus future royalties, following BioNTech’s $1.25 bn acquisition of CureVac to bolster cancer research efforts. In the UK, the Bank of England cut rates to 4% amid a rare split vote, signalling its easing cycle may be nearing an end, which weighed on the FTSE 100 as lingering inflation concerns lifted sterling. Standard Chartered formed a Hong Kong joint venture to seek a stablecoin licence under new legislation. Meanwhile, the UK government proposed up to £250 annual bill discounts for households near new power pylons to boost acceptance of grid upgrades needed for its 2030 decarbonisation goals. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 4.12% followed by Glencore PLC (LSE: GLEN) which gained around 2.50%. 

Commodity Update: The U.S. dollar weakened on Friday, heading for a weekly decline after President Trump’s interim Fed Governor pick raised hopes of a dovish successor to Jerome Powell. Gold climbed 1.10% to $3,491.90, silver added 0.54% to $38.50, and copper edged up 0.19% to $9,701.10. Brent crude inched up 0.01% to $66.40, as investors weighed the global economic risks from newly imposed tariffs. 

Our Stance: Global markets reacted to heightened political and monetary shifts as U.S. President Donald Trump nominated Council of Economic Advisers Chairman Stephen Miran to temporarily fill a vacant Federal Reserve seat, fuelling expectations of a more dovish stance while intensifying concerns over the Fed’s independence amid ongoing leadership changes and a search for Jerome Powell’s successor. Equity futures in the U.S. rose, global shares hovered near record highs, and gold gained on reports of new U.S. duties on bullion imports, even as fresh tariffs on major trade partners and a weaker U.S. labour market pressured sentiment. Oil prices held steady but were set for their steepest weekly drop since June, with markets eyeing a potential Trump-Putin meeting against the backdrop of rising U.S.-Russia trade tensions. 

FTSE 100 

The FTSE 100 is trading at 9,109.65, up 0.10%, facing repeated resistance on the upside. However, it remains above the 21-day and 50-day Simple Moving Averages, indicating a stable short-term uptrend. The 14-day RSI stands at 59.42, but is showing signs of waning momentum, suggesting that the recent rally may be losing steam. A brief pullback toward the 8,900 level is possible in the near term. Still, the overall technical structure remains positive, and if support levels hold, the index could resume its upward movement following a period of consolidation. 

FTSE 100 Technical Chart, Source - EODHD/Others