Global markets rally on easing U.S.-China trade tensions and strong tech earnings:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.21% on 25 April 2025.

Macro Update:  British retailers reported their best start to a year since 2021, with retail sales volumes rising 0.4% in March and 0.7% in February, although rising bills and U.S. trade tensions continue to weigh on consumer sentiment. Britain is also advancing towards a new defence agreement with the EU to reset post-Brexit relations, while Bank of England Governor Andrew Bailey flagged potential economic shocks from U.S. tariffs but ruled out a recession. BlackRock has been increasing investments in undervalued UK assets, WPP reiterated its annual guidance despite a 2.7% drop in Q1 revenue, and Britain's FTSE 100 held steady as markets assessed shifting U.S. trade policies alongside London’s move to ease sanctions on Syria.

Top Market Movers: Among top gainers on FTSE 100 index, Melrose Industries PLC (LSE: MRO) witnessed a rise of 2.67% followed by St James’s Place PLC (LSE: STJ) which gained around 2.45%.

Commodity Update: The dollar increased Friday after slight losses Thursday, as markets digested uncertainty over U.S. economic policy amid President Trump's shifting trade stances and Fed interference. Gold rose 0.35% to $3,360.55, silver gained 0.07% to $33.53, and copper climbed 0.23% to $9,437.80. Brent crude edged up 0.01% to $66.60 but was set for a weekly drop amid OPEC+ supply concerns and mixed U.S. tariff signals.

Our Stance: Investor sentiment improved globally as signs of a potential de-escalation in the U.S.-China trade war, with China considering exemptions on U.S. imports from its 125% tariffs, lifted European shares, boosted Asian markets for a second consecutive week, and pushed U.S. futures higher. Solid corporate earnings, particularly from tech giants like Alphabet and ServiceNow, further supported the rally, while eurozone bond yields edged up amid easing fears of a full-blown trade conflict. Taiwan and Manila markets also surged, led by strong gains in semiconductor and AI-related stocks. Overall, optimism around easing trade tensions, resilient corporate earnings, and a strengthening AI investment trend fueled broad-based global market gains.

FTSE 100

The FTSE 100 rose 0.15% on Friday, trading at 8,419.80 and forming a bullish candlestick pattern. This move positions the index above a key horizontal support zone, suggesting that bullish momentum may be returning. Despite the gain, the index continues to trade below its 50-period Simple Moving Average, indicating that broader downward pressure remains intact. The Relative Strength Index (RSI) has improved to 53.33, rebounding from the bearish territory and signalling a potential shift toward positive sentiment. A confirmed breakout above nearby resistance could pave the way for a short-term rally, placing key resistance levels in sharp focus. Until then, technical conditions remain mixed.​

FTSE 100 Technical Chart, Source - EODHD/Others