UK weighed by fiscal strain, global markets cautious on data, oil, and EM trends:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.23% on 04 September 2025.  

Macro Update: Britain’s economic signals showed mixed momentum. Construction remained weak, with the PMI at 45.5 in August (up from 44.3 in July) but still well below growth levels, driven by declines in housing and civil engineering. Inflation expectations among firms edged up to 3.3%, while employment growth forecasts eased to 0.2%. Lloyds Banking Group is reviewing 3,000 staff in the bottom 5% of performance, with about half at risk of dismissal amid cost cuts. Meanwhile, Currys’ sales rose 3% over 17 weeks, supported by cooling product demand, a pension review, and a £50mn buyback, lifting shares 22% to a four-year high. Globally, bond yields in Britain, France, and Japan stayed elevated, reflecting ongoing fiscal worries despite calmer trading conditions. 

Top Market Movers: Among top gainers on FTSE 100 index, Next PLC (LSE: NXT) witnessed a rise of 2.58% followed by WPP PLC (LSE: WPP) which gained around 2.52%. 

Commodity Update: The U.S. dollar eased Thursday amid bond market jitters and weak labour data, bolstering expectations of a Fed rate cut this month. Commodities traded lower, with gold down 1.06% at $3,597.30, silver off 1.82% at $41.29, and copper easing to $9,932.70. Brent crude slipped 0.40% to $67.35, pressured by reports of a potential OPEC+ output hike and rising U.S. oil inventories, raising concerns over softer fuel demand. 

Our Stance: Global markets reflected mixed sentiment. In the U.S., the Supreme Court is set to review cases testing President Trump’s authority over tariffs, immigration, and executive dismissals, which could reshape the limits of presidential power. Equity futures were muted as investors awaited key labor data, with Salesforce sliding 6.6% after a weak revenue forecast, tempering recent AI-driven rallies. In Europe, the STOXX 600 inched higher, supported by Fed rate-cut expectations, though travel stocks fell after Jet2’s profit warning. Oil prices eased, with Brent at $67.17 and WTI at $63.53, ahead of the OPEC+ meeting on possible production hikes. Meanwhile, emerging market equities were mixed; Chinese stocks fell for a third session on profit-taking and regulatory signals, despite dividend yields remaining attractive relative to bond yields. 

FTSE 100 

The FTSE 100 is trading at 9,179.07, marginally higher by 0.01%, while holding firm above the key 8,900 support and its 50-day SMA at 9,058.78. Despite this, it remains below the 21-day SMA of 9,189.57, reflecting limited momentum. The RSI at 52.62 signals neutral sentiment, aligning with consolidation. Key support is seen at 8,950, where a breakdown could invite further weakness. On the upside, resistance stands at 9,500, and a breakout above this level may open the path toward 9,800. 

Source - EODHD/Others