Global Markets Waver Amid Trade Tensions, Rate Uncertainty, and Geopolitical Risks:

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 24 March 2025.  

Macro Update:  Britain faced multiple developments this week, including Heathrow Airport’s defense of its full shutdown after an unprecedented transformer failure caused an 18-hour disruption, stranding thousands and costing airlines tens of millions. Meanwhile, the Bank of England launched its 2025 stress test to assess the resilience of the country’s major banks, with results expected later this year. Finance Minister Rachel Reeves reaffirmed the government's commitment to fiscal rules despite global volatility, hinting at possible public sector job cuts. In the corporate sphere, Barclays successfully had two U.S. securities fraud lawsuits dismissed over its unauthorized sale of $17.7 billion in securities. Separately, the government confirmed the first case of bird flu detected in a sheep in England during routine surveillance. 

Top Market Movers: Among top gainers on FTSE 100 index, Anglo American PLC (LSE: AAL) witnessed a rise of 3.68% followed by Prudential PLC (LSE: PRU) which gained around 2.87%. 

Commodity Update: The dollar dipped just below a three-week high against major currencies on Monday as traders awaited clarity on President Donald Trump’s upcoming tariff decisions. The greenback has struggled this year, with initial expectations of pro-growth policies shifting to concerns over Trump's aggressive trade stance, potentially sparking a recession. In commodities, gold rose 0.05% to $3,049.80, silver gained 0.59% to $33.67, and copper climbed 0.65% to $9,935.20. However, Brent crude slipped 0.40% to $71.88 as markets prepared for potential tariff announcements and kept an eye on ongoing Russia-Ukraine peace talks. 

Our Stance: Global markets reflected cautious optimism on Monday, with European equities gaining on signs of accelerating euro zone business activity—the fastest in seven months—driven by Germany’s return to manufacturing growth after nearly two years. Although France’s PMI remained in contraction, the softer-than-expected decline also helped buoy sentiment. Oil prices edged up amid the dual impact of U.S. sanctions on Iranian exports and potential geopolitical easing through Russia-Ukraine ceasefire talks. Meanwhile, currency markets showed mixed movements: the dollar held near a three-week high, the euro rebounded modestly, and the yen weakened on rising U.S. Treasury yields. Eurozone bond yields also inched higher as investors balanced optimism around Germany’s investment plans against concerns over possible U.S. tariff effects. Overall, markets remain cautiously upbeat but sensitive to geopolitical and policy signals. 

FTSE 100 

The FTSE 100 is trading at 8,690.47, showing a modest gain of 0.51% on Monday, forming a bullish candlestick pattern. The index remains above its 50-period Simple Moving Average (SMA), providing strong support, and is also positioned above the 21-period SMA, indicating potential short-term bullish momentum. This technical setup suggests caution, as further clarity is needed in the upcoming sessions. The index is holding above a crucial horizontal support level, signalling a shift toward a more optimistic sentiment after recent lows. The Relative Strength Index (RSI) stands at 52.84, suggesting moderate bullishness with room for upside. While market uncertainty persists, short-term traders may focus on key support levels, as momentum shifts will determine if the rally continues or a decline resumes. The next few sessions will be crucial in confirming the direction. 

Data Source - EODHD/Others