FTSE 100 Subdued on December 11, 2025: Fed Dovishness Offset by Global Caution

On December 11, 2025, the FTSE 100 advanced 0.14%, buoyed by the U.S. Federal Reserve’s decision to cut interest rates by 25 basis points and Chairman Jerome Powell’s comments signaling a less hawkish monetary policy stance than market expectations [0]. However, these positive impulses were offset by prevailing global caution, primarily fueled by Oracle’s disappointing forecast, which cited rising capital expenditures and slower-than-anticipated returns from AI investments [0]. Sector-wise, healthcare and mining stocks outperformed, while utilities and technology stocks lagged [0]. The FTSE 250 mid-cap index closed flat, indicating a mixed market reaction across company sizes [0]. Specific stock movements included gains for Entain and Associated British Foods (ABF), alongside declines for RS Group and Ceres Power [0].

The FTSE 100’s modest performance underscores the ongoing tug-of-war between central bank dovishness (which typically supports market sentiment) and corporate earnings concerns (specifically around AI investment returns) [0]. Oracle’s downbeat forecast contributed to a tech sector decline, highlighting investor sensitivity to the cost and profitability of AI initiatives [0]. Additionally, the Fed’s divided vote on rate cuts (suggesting potential cautious easing ahead) may limit future market gains if rate cuts are not as aggressive as expected [0].

: Persistent concerns about AI investment returns could weigh on tech stocks if additional companies report weak forecasts; the Fed’s slow easing pace may cap market upside [0]. Individual stock risks include short selling activity targeting Ceres Power, Entain’s upcoming CFO transition, and Oracle’s elevated spending plans [0].
: Dovish Fed policy could support interest rate-sensitive sectors, potentially creating opportunities in areas like real estate and consumer discretionary (though not explicitly analyzed here) [0]. Healthcare and mining sectors may continue to benefit from current market dynamics if underlying demand remains strong [0].

• The FTSE 100 gained 0.14% on December 11, 2025, while the FTSE 250 closed flat [0].
• Fed rate cuts (25 bps) and less hawkish comments provided upward pressure, offset by Oracle’s downbeat forecast and global caution [0], [1].
• Sector performance was mixed: healthcare/mining up, utilities/tech down [0].
• No volume data for the FTSE 100 was available, and details on other global caution factors were limited [0].
• Specific stocks: Entain and ABF gained; RS Group and Ceres Power declined [0].