UK growth surprise and dovish Fed bets lift markets, though geopolitical tensions linger:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.08% on 14 August 2025.  

Macro Update: Britain’s economy grew 0.3% in Q2 2025, slowing from 0.7% in Q1 but beating the BoE’s 0.1% forecast, as June’s gains in services, industrial output, and construction offset May’s dip. Sterling edged higher after the data. In corporate news, Centrica and Energy Capital Partners agreed to buy National Grid’s Isle of Grain LNG terminal—Europe’s largest—for about £1.5bn, with Centrica calling it a strategic asset for long-term energy security. Ukrainian President Zelenskiy met UK PM Starmer ahead of Trump’s Alaska summit with Putin, seeking to prevent territorial concessions to Russia. The FTSE 100 rose for a third day on U.S. Fed rate cut hopes, while Antofagasta posted a near 60% jump in H1 EBITDA to $2.23bn on higher copper output and prices, raising its interim dividend to 16.6 cents per share. 

Top Market Movers: Among top gainers on FTSE 100 index, Admiral Group PLC (LSE: ADM) witnessed a rise of 5.41% followed by Aviva PLC (LSE: AV.) which gained around 3.22%. 

Commodity Update: The U.S. dollar hovered near multi-week lows Thursday as traders increased bets on a Federal Reserve rate cut next month. Gold rose 0.18% to $3,414.50, silver gained 0.42% to $38.76, and copper inched up 0.19% to $9,827.40. Brent crude climbed 0.43% to $65.91, rebounding from the prior session’s sell-off, with the upcoming Trump–Putin meeting adding risk premiums to the market. 

Our Stance: U.S. President Donald Trump heightened geopolitical tensions ahead of Friday’s Alaska summit by warning of “very severe consequences” if Russia refuses a Ukraine ceasefire, while signaling potential follow-up talks with Ukrainian President Zelenskyy if progress is made. At the same time, market sentiment strengthened on expectations of a near-certain Federal Reserve rate cut in September after moderate July inflation and supportive comments from Treasury Secretary Scott Bessent, with some speculation of a larger move. Global equities inched higher—helped by stronger-than-expected UK GDP growth—while euro zone bond yields held steady, reflecting investor optimism over imminent U.S. monetary easing despite underlying geopolitical risks. 

FTSE 100 

The FTSE 100 is currently trading at 9,152.26, down 0.14%, yet holding above its 21-day and 50-day SMAs, indicating a steady short-term uptrend despite repeated resistance. The 14-day RSI at 62.13 signals healthy momentum, though slight moderation suggests a possible pullback toward 8,900. If key support levels remain intact, the index may consolidate before attempting another upward move, presenting potential trading opportunities in line with the prevailing bullish bias. 

FTSE 100 Technical Chart, Source - EODHD/Others