Global Trade Tensions Rise as U.S. Tariff Threats Mount; UK Eyes Stability Amid 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 0.30% on 09 July 2025.  

Macro Update: Risks to financial stability remain elevated despite easing trade tensions, with the Bank of England citing persistent geopolitical and sovereign debt concerns. Seven major UK housing developers agreed to pay £100mn following a watchdog probe into anticompetitive behavior. President Macron emphasized UK-France collaboration to strengthen Europe amid global instability. UK markets edged higher on corporate news, but investor sentiment was tempered by new U.S. tariff threats on copper and semiconductors. Meanwhile, concerns about cybersecurity transparency surfaced after claims of unreported major attacks, and a government-commissioned report called for overhauling the criminal justice system to address a record-high case backlog. 

Top Market Movers: Among top gainers on FTSE 100 index, British American Tobacco PLC (LSE: BATS) witnessed a rise of 2.69% followed by Smith & Nephew PLC (LSE: SN.) which gained around 1.91%. 

Commodity Update: The dollar strengthened for a third straight session against the yen after U.S. President Trump announced 25% tariffs on Japan and hinted at more trade actions. Gold declined 0.52% to $3,299.70, while silver rose slightly by 0.03% to $36.76. Copper slipped 1.01% to $9,703.55. Brent crude fell 0.30% to $69.91 amid rising U.S. crude inventories and investor caution ahead of further trade announcements. 

Our Stance: U.S. President Donald Trump has intensified global trade tensions by announcing a 50% tariff on imported copper and signaling forthcoming levies on semiconductors and pharmaceuticals, following recent threats of broader tariffs on 14 key trading partners including Japan, South Korea, Brazil, and India. While he claims ongoing negotiations with the EU and China are progressing, the announcements have unsettled markets, with the S&P 500 fluctuating and the dollar strengthening to a 2.5-week high. Copper prices surged to record levels, and Asia-Pacific equities showed mixed reactions, as uncertainty around the August 1 tariff deadline and Trump's evolving stance continues to weigh on investor sentiment. 

FTSE 100 

The FTSE 100 is trading at 8,865.55, up 0.13%, as it approaches a key resistance zone while remaining above its 21-day Simple Moving Average, suggesting short-term indecision. However, the index holds comfortably above its 50-day SMA, reinforcing a broader bullish structure. The Relative Strength Index at 61.45 signals neutral momentum, leaving room for consolidation or a fresh upside move. Strong support near 8,600 acts as a key buffer and may attract buyers on dips. Overall, market sentiment remains cautiously positive, supported by sector rotation and macroeconomic factors shaping the near-term outlook. 

FTSE 100 Technical Chart, Source - EODHD/Others