Global Macro and Markets Update: Geopolitical Shocks and AI Boom Collide

index Update: The FTSE 100 index, a key benchmark index for the London Stock Exchange, was trading rose around 0.22% on 04 June 2026.  

Macro Update: The global economy faces a dual shock as geopolitical tensions freeze maritime corridors and push Brent Crude toward $100, while central banks aggressively hike rates to curb Inflation. Meanwhile, an AI semiconductor boom fuels explosive growth in Taiwan and South Korea, shielding tech-centric nations from a broader Manufacturing and consumer spending slowdown. 

Top Market Movers: Among top gainers on FTSE 100 index, Relx PLC (LSE: REL) witnessed a rise of 5.54% followed by London Stock Exchange Gorup PLC (LSE: LSEG) witnessed a rise of 5.59%. 

Commodity Update: Global commodity and currency markets remained focused on escalating Middle East tensions, supporting safe-haven Demand and keeping the U.S. dollar near a two-month high. Gold advanced 0.77% to USD 4,502.90, while silver gained 0.17% to USD 73.82. Copper edged lower by 0.06% to USD 13,788.90 amid cautious sentiment. Brent crude declined 0.70% to USD 97.16, snapping a three-session rally as traders booked profits despite ongoing geopolitical risks and signs of tightening U.S. crude inventories. Risk appetite remained subdued across broader financial markets. 

Our Stance: We maintain a cautious macro stance, emphasizing high inflation, restrictive monetary policies, and geopolitical shocks to trade corridors. However, we remain highly selective, identifying massive growth opportunities in AI-driven technology Supply chains and semiconductor-producing nations like Taiwan and South Korea. 

FTSE 100: The FTSE 100 Index traded near 10,268.30, remaining below its 50-day SMA near 10,394.84, reflecting a cautious near-term technical structure. Recent price action indicates consolidation within a broad trading range as the index struggles to establish directional momentum. The 14-day RSI near 44.28 remained below the neutral 50 mark, suggesting subdued momentum conditions. Immediate support is placed near 10,165.62 and 10,062.93, while resistance levels are seen around 10,370.98 and 10,473.67. A sustained move beyond these levels could provide clearer directional cues in the sessions ahead.