Global Market Volatility Amid Trade Uncertainties and Strategic Shifts in Digital Assets:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.53% on 07 March 2025.  

Macro Update:  In February, UK house prices unexpectedly declined by 0.1%, following a 0.6% rise in January, as demand from buyers faded ahead of the March 31 deadline for tax incentives. This drop indicates a fragile state in the UK housing market, as highlighted by Halifax's head of mortgages, Amanda Bryden. Meanwhile, the UK Treasury is considering reducing funding for GB Energy, a state-backed company established last year with £8.3 billion to drive investment in renewable energy. The pound is experiencing its worst weekly performance against the euro in over two years, as a surge in European spending helped the euro gain strength, recording its best weekly performance against the dollar since March 2009. Against the pound, the euro is poised for a 1.5% weekly gain, the largest since January 2023. Additionally, Shell has launched production at Phase 4 of its Sabah deepwater oil project in Malaysian and Bruneian waters, a significant step in revitalizing oil and gas production in the region, especially for the Kimanis crude grade. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 1.91% followed by Taylor Wimpey PLC (LSE: TW.) which gained around 1.82%. 

Commodity Update: The U.S. dollar remained near a four-month low on Friday, pressured by ongoing tariff uncertainties and concerns about economic growth. Investors awaited key jobs data, with the outlook clouded by U.S. tariffs on Mexico and Canada. Despite a tariff reprieve from President Trump, the yen held near its strongest level against the dollar since October. In the commodities market, gold dropped 0.37% to $2,915.30, silver fell 0.24% to $33.24, and copper gained 0.26% to $9,683.10. Brent crude declined 0.19% to $69.59, and it has been on track for its largest weekly drop since October due to rising production and demand concerns. 

Our Stance: Recent developments have injected significant volatility into global markets. On Thursday, Wall Street stocks ended lower, with the Nasdaq entering correction territory since December, primarily due to uncertainties surrounding U.S. trade policies and their economic implications. President Donald Trump's announcement to temporarily exempt Canadian and Mexican goods from newly imposed tariffs offers a brief respite but leaves the overall trade environment uncertain. Concurrently, Trump signed an executive order establishing a Strategic Bitcoin Reserve, funded by cryptocurrencies seized in criminal and civil cases, marking a notable shift in the U.S. stance on digital assets. This move has sparked market reactions, with Bitcoin trading around $89,298, reflecting a 2.29% decrease from the previous close. Emerging market stocks are poised for weekly gains, bolstered by surging Chinese and Indian equities, despite the prevailing global market turbulence. These developments underscore a period of heightened market volatility, influenced by trade policy uncertainties and significant shifts in digital asset management. 

FTSE 100 

The FTSE 100 closed at 8,755.84 on Wednesday and showed a loss of 0.04%.forming a bearish candlestick pattern, the index remain and maintain a positive market sentiment. It closed near the 21-period Simple Moving Average (SMA), indicating a favourable short-term outlook. The 50-period SMA serves as a strong support level, suggesting the potential for continued upward momentum. The Relative Strength Index (RSI) stands at 57.14, reflecting healthy bullish strength without entering overbought territory, which suggests room for further gains. These technical signals indicate a positive trend, making the FTSE 100 an attractive option for short-term investors. 

Data Source - EODHD/Others