Global markets lift on U.S.-China tariff truce; UK outlook remains cautious amid job softness:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.11% on 13 May 2025.

Macro Update:  Britain’s job market continued to weaken in April with a decline of nearly 33,000 employees, following a 47,000 drop in March, as higher employer taxes and Donald Trump’s tariffs weighed on hiring—though this may ease Bank of England concerns over inflation. Meanwhile, seventeen major pension funds pledged to invest up to £50 billion into UK infrastructure and businesses by 2030, signalling strong institutional support for domestic growth. On the corporate front, Marston’s returned to profitability with a £19 million pre-tax profit due to cost savings and strong food and drink sales. BoE policymaker Alan Taylor pushed for a deeper rate cut to 4% amid deteriorating trade and demand, although the committee settled on a 25-bps reduction.

Top Market Movers: Among top gainers on FTSE 100 index, Entain PLC (LSE: ENT) witnessed a rise of 5.27% followed by J Sainsbury PLC (LSE: SBRY) which gained around 2.18%.

Commodity Update: The dollar remained firm Tuesday after the U.S. and China agreed to a 90-day tariff truce, easing trade war tensions and boosting market sentiment. The deal sparked a global relief rally, lifting stocks and commodities. Gold rose 0.20% to $3,234.50, silver jumped 0.95% to $32.93, and copper increased 0.29% to $9,511.40. However, Brent crude slipped 0.20% to $64.82 amid the improving trade outlook.

Our Stance: Global markets extended their rally on optimism stemming from the 90-day tariff truce between the U.S. and China, with investors viewing it as a temporary easing of trade war tensions. European equities inched up, led by a 0.2% gain in the STOXX 600, supported by upbeat corporate results such as Bayer’s 10.8% surge after a better-than-expected earnings decline. U.S. Treasury yields rose to a one-month high as investors moved into risk assets, reflecting greater confidence in economic stability. Overall, sentiment appears cautiously optimistic, with markets pricing in short-term relief while awaiting more concrete long-term resolutions.

FTSE 100: The FTSE 100 is trading near 8,613.43, up 0.10% for the day, and maintaining strength above a key support zone, which signals resilience and underlying bullish sentiment. A recent bullish candlestick highlights ongoing upward momentum, while the index’s position above the 50-period Simple Moving Average reinforces a positive technical bias. The 14-period RSI has risen to 60.13, indicating growing market strength. Although the short-term trend remains cautiously optimistic, a confirmed breakout above nearby resistance is needed to solidify the bullish outlook. Traders should watch for continued buying interest, which could validate a stronger upward move in the sessions ahead.​

FTSE 100 Technical Chart, Source - EODHD/Others