FTSE 100 Slides Amid Middle East Shock: Commodity & Macro Brief

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.67% on 10 June 2026.  

Macro Update: Global macro is gripped by a Middle East conflict energy shock, causing sticky inflation and a hawkish central bank pivot, with the Fed delaying rate cuts until 2027. This stagflationary pressure is heavily countered by an unprecedented, multi-billion-dollar global AI capex cycle, driving massive manufacturing export surges in Taiwan and South Korea.  

Top Market Movers: Among top gainers on FTSE 100 index, DCC PLC (LSE: DCC) witnessed a rise of 2.25% followed by Metlen Energy & Metals PLC (LSE: MTLN) witnessed a rise of 1.68%. 

Commodity Update: The U.S. dollar traded steady against major currencies on Wednesday as investors assessed fresh geopolitical tensions after the United States launched strikes on Iran following the reported downing of an American Apache helicopter in the Strait of Hormuz. Market participants also remained focused on upcoming U.S. inflation data for signals on the Federal Reserve’s policy outlook. In commodities, gold declined 1.98% to USD 4,200.80, silver fell 2.01% to USD 63.94, while copper edged up 0.10% to USD 13,580.10. Brent crude rose 1.80% to USD 93.08 amid renewed concerns over potential supply disruptions. 

Our Stance: Our stance is cautiously bearish on consumer-led markets due to oil-driven stagflation and delayed rate cuts. However, we are structural bulls on advanced technology, aggressively overweighting Taiwan and South Korea’s tech supply chains to capture the unprecedented global AI infrastructure capex boom. 

FTSE 100: The FTSE 100 Index traded near 10,190.50, remaining below its 50-day SMA of 10,407.46, reflecting a cautious near-term technical structure. Recent price action indicates the index is consolidating after a volatile phase, with sellers retaining a slight edge as the benchmark struggles to regain its short-term moving average. The 14-day RSI stood near 40.93, remaining below the neutral 50 mark and suggesting softer momentum conditions. Immediate support is seen near 10,100.00 and 10,000.00, while resistance levels are located around 10,300.00 and 10,450.00. A move above resistance could improve the near-term outlook, while a break below support may increase downside pressure.