UK faces fiscal strains while global markets weigh Fed cuts and geopolitical shifts:

Source: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.23% on 09 September 2025.

Macro Update: London-listed Anglo American and Canada’s Teck Resources agreed to merge into a $53 billion group, Anglo Teck, with Anglo shareholders owning 62.4% and Teck 37.6%, betting heavily on copper demand from EVs and AI-related growth. In the UK retail sector, August spending rose 3.1% year-on-year, largely food-driven (+4.7%), though higher prices played a role. Homeware retailer Dunelm warned of fragile demand amid inflation and slow rate cuts, despite early FY26 trading gains, shares falling 7.3%. Meanwhile, Glencore’s former recycling chief launched U.S.-based Valor to develop faster, cheaper metal refining technology using University of Illinois innovations, aimed at boosting copper and rare earths supply against China’s dominance.

Top Market Movers: Among top gainers on FTSE 100 index, Anglo American PLC (LSE: AAL) witnessed a rise of 9.11% followed by Glencore PLC (LSE: GLEN) which gained around 4.89%.

Commodity Update: The dollar slipped to a nearly seven-week low on Tuesday as markets awaited U.S. data revisions that may reveal deeper labour market weakness, strengthening the case for sharper Federal Reserve rate cuts. Commodities advanced, with gold up 0.28% at $3,687.50, silver rising 0.25% to $42.00, and copper gaining 0.30% at $9,952.60. Brent crude added 0.20% to $66.17, supported by limited OPEC+ output hikes and renewed sanctions concerns on Russia.

Our Stance: Massive U.S. job revisions alongside volatile headline data spotlight growing concerns about labor market weaknesses and data reliability. With the BLS expected to slash reported job gains by up to 1 million over April 2024–March 2025, markets are pricing in a near-certain Fed rate cut in September (with ~90% odds of a 25-bps cut, and ~12% for a 50-bps move). U.S. futures drifted modestly higher in anticipation. In Europe, stocks edged up amid Fed easing expectations, despite French political instability. Meanwhile, geopolitics took a hopeful turn as Israel accepted a U.S.-sponsored ceasefire proposal, the pound held steady on weak U.S. labor data, and OPEC+ prepared a gradual rollback of production cuts—all contributing to a cautious but constructive global market outlook.

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