Broader Geopolitical and Economic Uncertainty Weighs on Markets:

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 12 August 2025.  

Macro Update: Oil markets initially responded positively to the news that the United States and China had agreed to extend their existing trade truce by 90 days. This move delayed the potential reintroduction of elevated tariffs, offering a degree of relief to investors concerned about global trade disruptions. Market sentiment was lifted by the perception that both nations are working toward a more comprehensive trade resolution. However, uncertainty remains over the broader economic impact of existing U.S. tariffs, which came into effect the previous week and could still influence global oil demand. 

Top Market Movers: Among top gainers on FTSE 100 index, Spirax Group PLC (LSE: SPX) witnessed a rise of 13.12% followed by Airtel Africa PLC (LSE: AAF) which gained around 2.55%. 

Commodity Update: The U.S. dollar held steady on Tuesday ahead of a key U.S. consumer inflation report that could influence Federal Reserve rate cut expectations. Gold eased 0.10% to $3,401.20, while silver rose 0.14% to $37.84 and copper gained 0.27% to $9,759.20. Brent crude added 0.39% to $66.89 as the U.S. and China extended a pause on higher tariffs, easing trade war concerns and supporting fuel demand in both economies. 

Our Stance: As the session progressed, early oil price gains were tempered by caution ahead of a U.S. inflation report, expected to guide the Federal Reserve’s upcoming policy decisions. While recent labor market data has increased expectations of a rate cut in September, inflation levels remain a critical consideration for policymakers. Meanwhile, a planned meeting between the U.S. and Russian presidents to discuss the Ukraine conflict has also drawn market attention. The potential for increased sanctions or trade barriers involving key oil buyers like India and China could influence global oil supply dynamics, although hopes for de-escalation have provided some short-term reassurance. 

FTSE 100 

The FTSE 100 rose 0.29% to 9,156.12, holding above its 21-day and 50-day SMAs, indicating a stable short-term uptrend despite repeated resistance. The 14-day RSI at 63.31 reflects healthy momentum, though signs of slowing suggest a possible pullback toward 8,900. Overall, the technical outlook remains positive, and if key support levels hold, the index may consolidate before resuming its upward movement, maintaining scope for further gains within the prevailing trend. 

FTSE 100 Technical Chart, Source - EODHD/Others