Geopolitical Tensions and Policy Shifts Weigh on Sentiment Amid Market Repositioning:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was down around 0.47% on 17 June 2025.  

Macro Update: U.S. President Donald Trump and UK Prime Minister Keir Starmer signed a limited trade deal reducing tariffs on British autos and aerospace goods, though steel and aluminum issues remain. Domestically, Thames Water continues to face infrastructure failures and debt, causing sewage spills in the Thames. UK equities slipped amid rising Israel-Iran tensions, prompting Trump to leave the G7 summit early. Finance Minister Rachel Reeves is reconsidering taxing non-doms on global assets, while Legal & General expects 6–9% EPS growth and plans a capital-light shift. Shell’s LNG Canada gained interest due to its AECO pricing, and the UK government confirmed a £500mn rail steel contract and pledged £250mn for green aviation R&D. 

Top Market Movers: Among top gainers on FTSE 100 index, BP PLC (LSE: BP.) witnessed a rise of 1.82% followed by Shell PLC (LSE: SHEL) which gained around 1.14%. 

Commodity Update: The U.S. dollar edged slightly on Tuesday, while most currencies traded within narrow ranges amid persistent Middle East tensions and anticipation of key central bank decisions. Gold slipped 0.13% to $3,412.45, silver inched up 0.02% to $36.47, and copper declined 0.32% to $9,679.35. Brent crude rose 0.30% to $73.46 as President Donald Trump warned Tehran over the Israel-Iran conflict, which fueled supply disruption concerns. 

Our Stance: U.S. President Donald Trump and UK Prime Minister Keir Starmer signed a limited trade deal reducing tariffs on British autos and aerospace goods, though steel and aluminum issues remain. Domestically, Thames Water continues to face infrastructure failures and debt, causing sewage spills in the Thames. UK equities slipped amid rising Israel-Iran tensions, prompting Trump to leave the G7 summit early. Finance Minister Rachel Reeves is reconsidering taxing non-doms on global assets, while Legal & General expects 6–9% EPS growth and plans a capital-light shift. Shell’s LNG Canada gained interest due to its AECO pricing, and the UK government confirmed a £500mn rail steel contract and pledged £250mn for green aviation R&D. 

FTSE 100: The FTSE 100 declined 0.47% to 8,833.38, facing resistance but still trading above its 50-day Simple Moving Average, which underscores continued bullish momentum in the broader trend. The RSI at 60.55 signals some loss of strength, suggesting the possibility of short-term consolidation. Key support is identified at 8,750—holding above this level could maintain the upward bias, while a break below may lead to a mild correction. Sectoral rotation and global macroeconomic factors will likely shape near-term direction. Despite the recent dip, the overall technical structure remains positive, with scope for further gains if critical support levels remain intact. 

FTSE 100 Technical Chart, Source - EODHD/Others