UK fiscal woes, Fed cut hopes shape global market mood:

Source: Krish Capital Pty Ltd

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

Macro Update: British employers delivered the weakest pay settlements since 2021, with median awards slipping to 3.0% in July from 3.4%, while only 9% offered increases above 4%, highlighting business caution ahead of potential tax rises in the November budget. Meanwhile, UAE developers such as Binghatti and Danube are targeting British investors with new London offices, as a weaker dirham makes Dubai property cheaper in pound terms. In currency markets, sterling held at $1.3513 after Friday’s 0.5% rally on weak U.S. jobs data, as traders price in a Fed rate cut next week while the BoE is seen holding rates. On the corporate side, chipmaker IQE warned of ongoing handset market weakness, cut its earnings forecast, and said it was exploring a potential sale, sending its shares down over 11% to a 16-year low at 7.64p.

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 2.11% followed by Entain PLC (LSE: ENT) which gained around 1.92%.

Commodity Update: The dollar wavered on Monday after weak U.S. labour data reinforced expectations of a rate cut, while the yen slid on political uncertainty following Prime Minister Shigeru Ishiba’s resignation. Commodities showed mixed trends: gold slipped 0.51% to $3,634.45, silver fell 0.49% to $41.34, and copper gained 0.23% to $9,910.35. Brent crude rose 0.60% to $65.90, supported by slower OPEC+ production hikes and geopolitical tensions surrounding the Russia-Ukraine conflict.

Our Stance: Global markets showed cautious optimism as Israel accepted a U.S.-brokered ceasefire proposal, raising hopes for peace talks. U.S. stock futures edged higher on stronger expectations of a Fed rate cut after weak payrolls, with markets pricing a 90% chance of a 25-bp cut and some betting on 50 bps. OPEC+ agreed to lift output by 137,000 bpd from October, signaling Saudi Arabia’s push for market share. In Asia, Indonesia’s surprise removal of Finance Minister Sri Mulyani rattled confidence, sending equities down 1.3% even as the rupiah spiked.

FTSE 100

The FTSE 100 is trading at 9,218.57, up 0.11%, holding above the crucial 8,900 support and the 50-day SMA at 9,069.18. The index is also positioned above its 21-day SMA of 8,910.41, though momentum remains limited. The RSI at 66.00 indicates neutral sentiment, consistent with ongoing consolidation. Key support lies at 8,950, and a breakdown below this level could trigger further weakness. On the upside, resistance is seen at 9,500, with a breakout potentially paving the way toward 9,800.

Source - EODHD/Others