Global Markets Face Sticky Inflation & Policy Pressure Amid Shifting Geopolitics

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading declined around 0.32% on 23 June 2026.  

Macro Update: The global economic transition features easing stagflation risks as U.S.-Iran peace progress cools oil prices to $83. However, high inflation keeps the Fed hawkish, while Japan hikes rates to 1%. Eurozone manufacturing contracts, China's retail sales drop 0.6%, and major tech investments balance against an intense corporate liquidity squeeze. 

Top Market Movers: Among top gainers on FTSE 100 index, Bunzl PLC (LSE: BNZL) witnessed a rise of 2.92% followed by Babcock International Group PLC (LSE: BAB) witnessed a rise of 2.55%. 

Commodity Update: The U.S. dollar surged to an over one-year high on Tuesday as growing expectations of a hawkish Federal Reserve outweighed easing geopolitical concerns and lower oil prices. Sterling remained in focus following developments surrounding British Prime Minister Keir Starmer’s resignation. Gold fell 1.02% to USD 4,159.20, while silver declined 3.51% to USD 63.29 and copper slipped 0.61% to USD 13,571.20. Brent crude oil gained 0.38% to USD 78.15 after the previous session’s sharp decline, as investors monitored U.S.-Iran peace talks and awaited clearer signals on crude flows through the Strait of Hormuz. 

Our Stance: The global economy balances sticky inflation and geopolitical friction against robust AI infrastructure spending as a growth cushion. While hawkish central banks and volatile energy paths restrict near-term easing, resilient corporate capital expenditure and massive digital transition investments serve as vital structural shock absorbers against broader systemic slowdowns. 

FTSE 100: The FTSE 100  Index traded near 10,396.30 while remaining close to its 63-day SMA near 10,393.82, indicating a stable near-term technical structure. Recent price action reflects continued consolidation as the index moves within a narrow trading range following earlier volatility. The 14-day RSI stood near 50.58 and remained slightly above its average of 50.16, suggesting balanced momentum conditions. Immediate support is placed near 10,292.34 and 10,188.37, representing approximately 1% and 2% below the current level. On the upside, resistance is seen around 10,500.26 and 10,604.23, representing approximately 1% and 2% above the current level. A sustained move beyond these levels could influence the next directional trend.