Economic Strains and Political Uncertainty Weigh on UK and Global 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 0.04% on 06 May 2025.  

Macro Update:  Britain’s services sector contracted in April for the first time since October 2023, with the S&P Global Services PMI falling to 49.0 from 52.5, the steepest decline in over two years, as U.S. tariff-related turmoil weighed on exports and sentiment. In corporate news, DoorDash agreed to acquire Deliveroo for £2.9 billion, boosting Deliveroo shares by about 2%. Meanwhile, UK new car registrations dropped over 10% year-on-year in April, including a 62% plunge in Tesla sales amid weak consumer confidence and tax hikes. Associated. Separately, the British government is reconsidering its decision to remove winter fuel payments from pensioners, following Labour’s recent by-election setback. 

Top Market Movers: Among top gainers on FTSE 100 index, Endeavour Mining PLC (LSE: EDV) witnessed a rise of 4.95% followed by Fresnillo PLC (LSE: FRES) which gained around 3.55%. 

Commodity Update: The U.S. dollar is on track for a third weekly gain, buoyed by encouraging trade talks and strong economic data. Gold rose 1.05% to $3,256.00, while silver dipped 1.34% to $32.62. Copper climbed 1.78% to $9,370.20. Brent crude gained 0.60% to $62.51 after China expressed openness to dialogue with the U.S., sparking optimism over easing trade tensions. 

Our Stance: Global market sentiment remains fragile as political uncertainty in Germany and renewed trade tensions from the U.S. weigh heavily on investor confidence. European equities declined, with Germany’s DAX dropping 1.6% after Friedrich Merz failed to secure a governing majority, disrupting expectations of stable leadership. Meanwhile, caution surrounding the Federal Reserve’s policy outlook and growing anxiety over U.S. tariffs have led bond investors to shorten duration exposure and stay neutral. The dollar rebounded slightly against Asian currencies, though its overall weakness persists amid erratic U.S. trade moves under President Trump. 

FTSE 100 

The FTSE 100 is currently trading near 8,578.17, down 0.21% on the day, yet holding firmly above a key support zone. Despite a recent bearish candlestick pattern, its position above support suggests the potential for a bullish reversal. The 14-period RSI has climbed to 59.89, 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