UK markets pressured as Fed outlook dominates:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.11% on 24 September 2025.  

Macro Update: London stocks were muted on Wednesday, with the FTSE 100 down 0.08% and FTSE 250 off 0.07%, tracking Wall Street’s decline after Fed Chair Jerome Powell stressed the need to balance inflation risks with a weakening job market. Investors still expect U.S. rate cuts this year, but UK updates weighed. Eli Lilly’s CEO called Britain “the worst country in Europe” for drug prices, warning of reduced pharma investment unless rebate rules change. Pay awards stayed at 3% amid elevated inflation, limiting BoE easing prospects. Jaguar Land Rover extended factory closures to October 1 after a cyberattack, costing £50mn weekly. Ofgem ordered suppliers to offer lower standing charge tariffs by 2026, though bills may not fall. EnQuest reaffirmed its output forecast but posted a $173.5mn H1 loss, hit by lower production and Britain’s 78% windfall tax, while shifting more investment abroad. 

Top Market Movers: Among top gainers on FTSE 100 index, Antofagasta PLC (LSE: ANTO) witnessed a rise of 6.71% followed by Anglo American PLC (LSE: AAL) which gained around 5.03%. 

Commodity Update: The U.S. dollar firmed from near one-week lows on Wednesday as traders priced in two more rate cuts this year, despite Fed Chair Jerome Powell’s cautious stance. Gold dropped 0.73% to $3,787.50, silver fell 0.98% to $44.17, and copper eased 0.09% to $9,982.10. Brent crude rose 0.40% to $67.88, supported by stalled Kurdish oil exports, a bigger U.S. inventory draw, and rising geopolitical tensions around Russia. 

Our Stance: Global markets reflected a cautious tone on Wednesday as London stocks tracked Wall Street lower after Fed Chair Jerome Powell reiterated the challenge of balancing persistent inflation with a weakening labour market, leaving investors uncertain but still hopeful for U.S. rate cuts this year. In the UK, sentiment was further pressured by sector-specific headwinds: Eli Lilly’s sharp criticism of Britain’s drug pricing regime underscored pharma investment risks, pay awards stagnated at 3% amid sticky inflation that could delay BoE easing. Meanwhile, Ofgem’s tariff reforms raised questions over household bills, and EnQuest swung to a H1 loss under the weight of Britain’s 78% windfall tax, highlighting the drag of fiscal and regulatory pressures on business confidence. 

FTSE 100 

The FTSE 100 is trading at 9,205.68, down 0.19%, yet continues to hold above key support at 8,900 and the 50-day SMA of 9,167.08. The index trades slightly below the 21-day SMA at 9,220.436, indicating limited upside momentum and the potential for consolidation. The RSI near the midpoint signals a neutral to mildly positive outlook. Key support is placed at 8,950, while resistance lies at 9,500 and 9,800. 

Source - EODHD/Others