Global Macro & FTSE 100 Update: AI Boom Shields Markets Amid Consolidation

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.85% on 25 June 2026.  

Macro Update: The global macroeconomy operates under a bifurcated "stagflation vs. AI boom" paradigm. Rising Middle East tensions and high commodity prices fuel inflation, forcing the ECB and BOJ into hawkish policy shifts while the US Fed holds steady. Concurrently, unprecedented corporate capital expenditure in AI infrastructure and technology drives robust global market gains. 

Top Market Movers: Among top gainers on FTSE 100 index, 3 I Group PLC (LSE: III) witnessed a rise of 10.91% followed by Aberdeen Group PLC (LSE: ABDN) witnessed a rise of 5.43%. 

Commodity Update: Commodity Update: Gold prices extended their decline in Asian trading on Thursday, remaining close to their lowest levels in more than seven months as a stronger U.S. dollar and expectations of additional Federal Reserve policy tightening reduced demand for the non-yielding precious metal. Gold declined 0.42% to USD 3,993.35 per ounce, while silver dropped 2.14% to USD 56.83 per ounce. Copper advanced 0.58% to USD 13,106.00 per metric ton. Meanwhile, Brent crude oil slipped 0.50% to USD 73.38 per barrel as concerns over Middle East supply disruptions continued to ease. 

Our Stance: Your perspective correctly frames AI capital spending as a vital structural buffer. This continuous digital transition insulates productivity from high interest rates. It prevents localized geopolitical shocks and sticky inflation from coalescing into a deeper global recession, acting as a unique shield against cyclical downturns. 

FTSE 100: The FTSE 100  Index closed near 10,485.80 while continuing to trade above its 63-day SMA around 10,409.47, reflecting a stable medium-term technical structure. Recent price action indicates the index remains in a consolidation phase after recovering from earlier volatility, with buyers and sellers keeping the benchmark within a relatively narrow range. The 14-day RSI stood near 55.67, suggesting moderately positive momentum without indicating overbought conditions. Immediate support is placed near 10,414.00 and 10,320.00, while resistance is seen around 10,507.80 and 10,600.00. A sustained move beyond these key levels could provide clearer direction for the index's next phase of trading.