Cautious Global Sentiment Amid Soft U.S. Data and Shifting UK Landscape:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.02% on 06 June 2025.  

Macro Update: The UK saw a mix of political, economic, and corporate developments this week. Labour Party’s unexpected win in a heated Scottish by-election brought partial relief to PM Keir Starmer amid declining support. On the economic front, May house prices dipped 0.4% due to higher transaction taxes, though annual gains stood at 2.5%. While Q1 GDP growth of 0.7%, the strongest in the G7, signalled recovery, concerns remain over stagnant living standards and high energy costs. In markets, the FTSE 100 edged up 0.1% on mining gains, while M&A activity picked up with Unite Group's £719mn bid for Empiric Student Property. 

Top Market Movers: Among top gainers on FTSE 100 index, 3i Group PLC (LSE: III) witnessed a rise of 2.22% followed by Fresnillo PLC (LSE: FRES) which gained around 1.66%. 

Commodity Update: The dollar faced a weekly decline on Friday amid weak U.S. economic data and stalled trade talks ahead of a key deadline. Markets awaited the U.S. nonfarm payrolls report for further cues. Gold rose 0.30% to $3,385.55, silver gained 1.06% to $36.17, and copper edged up 0.28% to $9,749.45. Brent crude slipped 0.12% to $65.22 but was set for its first weekly gain in three weeks. 

Our Stance: Global market sentiment turned cautious amid a volatile backdrop of soft U.S. economic data, Tesla’s sharp stock decline, and muted progress in trade talks. Wall Street closed lower as Tesla plunged over 14%, erasing $150bn in value amid tensions between Elon Musk and President Trump. Broader markets braced for U.S. payroll data, with fears of stagflation weighing on risk appetite and pressuring the dollar. Meanwhile, the ECB delivered a 25bps rate cut but signalled a potential pause, leading to easing euro zone bond yields, while the euro held near six-week highs on hawkish central bank commentary. 

FTSE 100: The FTSE 100 closed flat at 8,811.46 on Friday, supported by strong performance in the UK tech sector. Renewed investor interest in technology stocks helped maintain momentum, with the index holding above its 50-day Simple Moving Average. A resilient RSI at 65.82 and bullish candlestick signals point to sustained upside. Optimism was fueled by improving outlooks for digital innovation and AI-led growth, aligning with recent strength in global tech markets. While the trend remains positive, a brief consolidation phase is possible after recent sector-driven gains.​ 

FTSE 100 Technical Chart, Source - EODHD/Others