Britain and global markets navigate recovery with policy shifts, AI optimism, and resilient energy and housing strategies:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.61% on 25 March 2025.  

Macro Update:  Tullow Oil reported a return to profitability in 2024, posting a profit after tax of $55 million compared to a loss of $110 million in 2023, largely driven by a reduction in impairments and asset revaluation gains. Shell announced an increase in its shareholder distribution policy to 40–50% of cash flow from operations, up from 30–40%, with a focus on share buybacks, while also lowering its capital expenditure outlook to a range of $20–22 billion through 2028. Bank of England Governor Andrew Bailey stated that artificial intelligence has the potential to be as transformative as electricity, highlighting its ability to lower costs, boost innovation, and raise productivity and per capita income over time. The UK government committed £2 billion to build up to 18,000 social and affordable homes by 2029, as part of its broader plan to deliver 1.5 million properties and stimulate economic growth, supported by planning reforms from Prime Minister Keir Starmer’s Labour Party. Meanwhile, the FTSE 100 closed slightly lower by 0.1% on Monday, with losses in the pharmaceuticals and biotech sector—led by AstraZeneca—offset by gains in industrial metal miners, which rose 1.6% on higher copper prices amid speculation over U.S. tariffs. 

Top Market Movers: Among top gainers on FTSE 100 index, Segro PLC (LSE: SGRO) witnessed a rise of 3.10% followed by Weir Group PLC (LSE: WEIR) which gained around 2.19%. 

Commodity Update: The dollar reached a three-week high against the yen on Tuesday, bolstered by strong U.S. services data and easing trade concerns. President Trump indicated that not all of his proposed tariffs would take effect on April 2, offering potential exemptions for some countries. This fueled investor optimism, boosting the dollar and supporting Wall Street's positive mood. In commodities, gold rose slightly to $3,045.40, silver gained 0.43% to $33.49, and copper climbed to $9,965.20. Meanwhile, Brent crude remained steady at $73.05 per barrel after a recent surge, with Trump threatening tariffs on oil imports from Venezuela. 

Our Stance: European shares advanced on Tuesday, with the STOXX 600 up 0.4%, supported by improved German business sentiment and a historic debt deal aimed at boosting growth, while Spanish and French markets led regional gains. Eurozone bond yields edged higher as markets awaited further data and responded to U.S. President Trump’s indication that some of the threatened tariffs may not be imposed on April 2, easing concerns and triggering a rally in U.S. equities, with the S&P 500 closing at a two-week high led by Nvidia and Tesla. Oil prices also rose for a fifth consecutive day amid tightening global supply fears following new U.S. sanctions on buyers of Venezuelan crude. Overall, market sentiment remains cautiously optimistic, buoyed by signs of economic recovery, moderated trade tensions, and firming commodity prices. 

FTSE 100 

The FTSE 100 is currently trading at 8,672.63, up by 0.40% on Tuesday, forming a bullish candlestick pattern. The index remains above its 50-period Simple Moving Average (SMA), offering solid support, but is below its 21-period SMA, indicating potential short-term bearish pressure. This technical setup calls for caution, as further price action will be needed for clarity. The index is holding above a key horizontal support level, suggesting a more positive sentiment after recent lows. The Relative Strength Index (RSI) stands at 51.51, pointing to moderate bullishness with room for growth. With market uncertainty in play, short-term traders should watch key support levels closely, as momentum shifts will determine whether the rally continues or a pullback takes place. The coming sessions will be critical in confirming the market’s direction. 

Data Source - EODHD/Others