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Weekly Market Review - 01-09-2025

  • Writer: Eloise Bell
    Eloise Bell
  • Sep 1
  • 3 min read

Updated: 6 days ago

As August comes to a close, inflation remains a central theme across major economies. In the UK, elevated services costs and cautious consumer sentiment continue to shape the outlook. In the US, signs of cooling inflation are tempered by persistent core pressures and shifting trade policies. Meanwhile, the eurozone shows signs of stability, with balanced price signals and steady growth. Central banks remain in focus, with policymakers signalling a more measured approach to easing. We also examine commodity trends, ESG developments, and the evolving geopolitical landscape as markets head into September.



Market Recap.


Among equity benchmarks, the FTSE 100 ETF declined by 1.35%, underperforming global peers. U.S. indices saw smaller losses: the Nasdaq 100 ETF fell 0.58%, the S&P 500 ETF slipped 0.22%, and the Dow Jones Industrial Average ETF eased 0.44%.

 


News.


The Federal Reserve signalled a more cautious stance at its annual policy symposium, with Chair Jerome Powell noting that risks to the labour market may justify adjusting policy. Markets interpreted this as an increased likelihood of a rate cut in September. Separately, the United States ended duty-free treatment for low-value imports, a change expected to raise costs for cross-border e-commerce and small businesses.



Inflation. 


Inflation in the United States remains a tug-of-war between rising goods prices, driven by tariffs, and cooling housing and services costs. Cliff Hodge, Chief Investment Officer at Cornerstone Wealth Group, notes that “even as tariffs push the cost of some goods higher, other parts of the economy are cooling,” helping to offset broader inflation pressures. He adds that “slowing wage growth and softening consumer spending” are signs that households are beginning to retrench, which could dampen future price increases. This balancing act has kept overall inflation from accelerating sharply, but the outlook remains uncertain as markets await clearer signals from the Federal Reserve.



Central Banks.


The Bank of England’s latest policy meeting underscored a cautious approach to easing. Governor Andrew Bailey warned that headline inflation could climb to around 4% in September, driven by energy and food costs, even as underlying pressures ease. He stressed that “it remains important that we do not cut Bank Rate too quickly or by too much,” signalling that further reductions will be gradual and data-dependent. The Monetary Policy Committee also highlighted risks of second-round effects from higher costs feeding into wages and prices, reinforcing the need for a measured path toward the 2% target.



Commodities.


Oil prices ended the week slightly higher. Brent crude rose by about 0.8% to close near $68 per barrel, while West Texas Intermediate (WTI) gained roughly 1% to finish around $64 per barrel. Gains were supported by supply concerns, even as demand indicators softened. Gold traded in a narrow range, supported by expectations of lower interest rates, while copper prices were steady as supply risks offset weaker demand signals.

 


ESG.


Google published new metrics on the environmental footprint of AI usage, calling for industry-wide standards to track and reduce emissions. Meanwhile, Nestlé reported strong progress in its regenerative agriculture program, with its flagship coffee brand sourcing nearly a third of its beans from farms using sustainable practices, well ahead of its 2025 target. These developments reflect a growing commitment among global firms to integrate ESG principles into core business strategies



Geopolitics.


Trade policy dominated headlines as the U.S. removed duty-free treatment for low-value imports, a move expected to increase costs for global supply chains and small businesses. The decision adds to existing tariff tensions and could weigh on consumer goods pricing in the months ahead.



Week Ahead.


United States: Attention will turn to key labour market indicators, including the ADP employment report and non-farm payrolls for August, alongside the ISM manufacturing and services surveys. These releases will be closely watched for signs of economic resilience and their implications for the Federal Reserve’s next policy move.


United Kingdom: Markets will focus on the Nationwide House Price Index and construction sector data, providing insight into housing market trends and broader economic momentum following recent interest rate cuts.


Eurozone: Preliminary inflation figures for August and final second-quarter GDP data will dominate the agenda, offering an update on price stability and growth prospects as the European Central Bank signals the end of its easing cycle.



Sources.

Bank of England. Monetary Policy Report – August 2025. Retrieved from: https://www.bankofengland.co.uk/monetary-policy-report/2025/august-2025

PwC UK. CPI Commentary – August 2025. Retrieved from: https://www.pwc.co.uk/press-room/press-releases/research-commentary/2025/pwc-comments-on-the-latest-ons-august-2025-cpi-figures.html

Cornerstone Wealth Group. Cliff’s Notes – US Market and Economic Outlook, August 2025. Retrieved from: https://www.cwgadvisors.com/blog/cliffs-notes-us-market-and-economic-outlook-august-2025

Carnegie Investment Counsel. Monthly Market Commentary – August 2025. Retrieved from: https://blog.carnegieinvest.com/monthly-market-commentary-august-2025

Morningstar. Eurozone Inflation Preview – August 2025. Retrieved from: https://global.morningstar.com/en-gb/economy/eurozone-inflation-what-expect-augusts-cpi-data

Plus500. CPI Preview for Spain, Italy, France & Germany – August 2025. Retrieved from: https://us.plus500.com/en/newsandmarketinsights/cpi-august-2025-spain-germany-eu




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