Cautious Optimism in Global Markets Amid Trade Hopes and Policy Shifts:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.11% on 08 May 2025.

Macro Update:  The Bank of England is expected to continue its cautious path of interest rate cuts amid global economic uncertainty, while markets watch for hints of acceleration in easing policy. On the same day, a potential UK-U.S. trade deal to lower tariffs—President Trump’s first such agreement since imposing global levies—is anticipated, with an official announcement expected shortly. Meanwhile, Britain’s housing market showed signs of cooling after the expiry of a temporary tax break, and wealth manager Rathbones reported net outflows amid market volatility driven by Trump’s tariff actions. Despite a steady pound and gains in mid-cap stocks, overall economic sentiment remains cautious. Additionally, the UK’s National Wealth Fund will provide £600 million to ScottishPower for vital grid upgrades, following recent European blackouts that exposed infrastructure vulnerabilities.

Top Market Movers: Among top gainers on FTSE 100 index, IMI PLC (LSE: IMI) witnessed a rise of 4.69% followed by Mondi PLC (LSE: MNDI) which gained around 3.69%.

Commodity Update: The dollar held steady ahead of the Federal Reserve's policy meeting, with Chair Jerome Powell expected to call for more data before any decision. Asian investors continued pulling out U.S. assets, while upcoming U.S.-China trade talks calmed market fears. Gold slipped 0.68% to $3,399.60, silver fell 0.35%, and copper dropped 0.73%. Brent crude rose 0.60% to $60.52 on signs of weaker U.S. output and stronger global demand.

Our Stance: Global markets reflected cautious optimism on Thursday as U.S. President Trump signaled progress toward a potential trade deal, likely with Britain, boosting European shares and oil prices. The pan-European STOXX 600 rose 0.5%, while Brent crude gained 1.2% on hopes of easing U.S.-China tensions. Meanwhile, expectations of a Bank of England rate cut added momentum to UK equities. However, investor sentiment remained mixed globally, with emerging markets dipping for a third straight session amid persistent uncertainty. Separately, legal tensions continue in the U.S. over a proposed land transfer to Rio Tinto and BHP for a copper mine, highlighting the growing friction between resource demand and Indigenous rights.

FTSE 100

The FTSE 100 is currently trading near 8,594.93, gain of  0.42% on the day, yet holding firmly above a key support zone. Following a recent bearish candlestick pattern, its position above support suggests the potential for a bullish reversal. The 14-period RSI has climbed to 60.22, indicating improving market sentiment. The index also remains above its 50-period Simple Moving Average, reinforcing ongoing bullish momentum. While the technical outlook remains mixed, a strong breakout above nearby resistance would be needed to confirm a short-term uptrend as the session progresses.​

FTSE 100 Technical Chart, Source - EODHD/Others