Global Markets Diverge: AI Boom Clashes with U.S.-Iran War Energy Shock

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.77% on 11 June 2026.  

Macro Update: The U.S.-Iran war has pushed oil over $100, driving global stagflation and forcing the Fed and ECB to raise rates, harming energy-heavy sectors. Conversely, an AI chip boom is fueling historic growth, driving Taiwan’s GDP up 9.6% and boosting South Korea, creating a sharp economic divergence worldwide.  

Top Market Movers: Among top gainers on FTSE 100 index, Prudential PLC (LSE: PRU) witnessed a rise of 3.05% followed by Standard Chartered PLC (LSE: STAN) witnessed a rise of 2.97%. 

Commodity Update: Commodity Update: The U.S. dollar traded cautiously as escalating geopolitical tensions in the Middle East weighed on market sentiment, while a sharp rise in U.S. consumer inflation added uncertainty around the Federal Reserve’s policy outlook. Commodity markets came under pressure, with gold declining 0.91% to USD 4,096.00 per ounce, silver falling 2.02% to USD 63.44 per ounce, and copper easing 0.88% to USD 13,405.90 per tonne. Meanwhile, Brent crude oil advanced 2.10% to USD 95.02 per barrel after fresh U.S. strikes on Iran and reports that Tehran suspended vessel traffic through the Strait of Hormuz. 

Our Stance: The global economy faces a sharp divergence. Surging energy costs from the U.S.-Iran conflict fuel stagflation and prolonged central bank tightening. However, an unprecedented AI hardware boom shields tech-reliant exporters. We advise mitigating energy-driven downside risks while aggressively capitalizing on structural AI growth. 

FTSE 100: The FTSE 100 Index is trading near 10,329.50, remaining below its 50-day SMA of 10,405.01, indicating that the broader near-term trend remains cautious despite the latest rebound. Recent price action suggests the index is attempting to stabilize after a volatile phase, while the 14-day RSI at 48.64 points to improving but still neutral momentum conditions. Based on the current level, Support 1 is placed near 10,226.20 and Support 2 near 10,122.91, while Resistance 1 is located around 10,432.80 and Resistance 2 near 10,536.09. A sustained move above the resistance zone could strengthen the recovery attempt, while a break below support may weaken the short-term outlook.