Global Markets React to Escalating Middle East Tensions:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.19% on 13 June 2025.  

Macro Update: Investor sentiment weakened on Friday as geopolitical risks surged following Israeli airstrikes on Iranian military and nuclear targets. The FTSE 100 dipped 0.3% by mid-morning, while the British pound declined 0.6% against the dollar, reflecting broader global unease. European indices mirrored the downturn, with Germany’s DAX shedding 1.5% and France’s CAC 40 falling over 1%, as markets priced in the potential for a wider regional conflict and its economic repercussions. Reports of possible high-profile casualties in Iran and Tehran’s threat of retaliation further exacerbated fears of escalating violence. 

Top Market Movers: Among top gainers on FTSE 100 index, Bae Systems PLC (LSE: BA.) witnessed a rise of 3.05% followed by BP PLC (LSE: BP.) which gained around 2.82%. 

Commodity Update: The U.S. dollar surged along with safe-haven currencies like the yen and Swiss franc after Israel reportedly launched strikes on Iran, according to U.S. officials. Explosions were also reported near Tehran. Gold jumped 1.68% to $3,460.15, silver rose 0.91%, while copper slipped 0.24%. Brent crude soared 7.63% to $74.65, reaching multi-month highs as fears of supply disruptions intensified amid escalating Middle East tensions. 

Our Stance: Despite the broader selloff, energy stocks emerged as a bright spot amid rising oil price concerns linked to potential supply disruptions. Leading British energy firms including BP and Shell recorded gains, alongside smaller North Sea operators such as Serica Energy and Enquest. The market response highlights investors' flight to defensive sectors amid mounting instability. Meanwhile, expectations remain that the Bank of England will maintain its benchmark interest rate at 4.25% next week, as policymakers weigh mixed economic indicators against easing inflationary pressures. 

FTSE 100: The FTSE 100 is trading at 8,840.77, down 0.50%, after forming a higher high that now acts as immediate resistance. Despite the pullback, the index remains above its 50-day SMA, signaling continued bullish strength in the broader trend. The RSI stands at 63.52, indicating solid momentum but nearing overbought territory, suggesting a possible short-term pause or consolidation. Key support is seen at 8,750—holding above this level could trigger a renewed upside, while a break below may lead to a minor correction. Sector rotation and macro cues may shape near-term direction, but the overall technical outlook remains positive.​  

FTSE 100 Technical Chart, Source - EODHD/Others