Markets Balance Tariff Uncertainty and Global Diplomatic Moves:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.14% on 08 July 2025.  

Macro Update: The pound rose on Tuesday as investors shifted focus to markets less exposed to U.S. tariff risks, following President Trump's announcement of 25% tariffs on imports from countries including Japan and South Korea, effective August 1. Sterling gained 0.3% to $1.3645, marking a 9.1% year-to-date rise and nearing its best annual performance since 2017. Meanwhile, Rio Tinto is set to appoint a new CEO by late July, with a focus on strategic M&A and cost efficiencies. BP and Shell signed agreements with Libya's NOC for exploration studies despite ongoing political instability in the region. In equity markets, the FTSE 100 was flat while midcaps edged higher, although energy stocks, particularly Shell and BP, declined on weaker outlooks and falling oil prices amid an OPEC+ output increase. 

Top Market Movers: Among top gainers on FTSE 100 index, Glencore PLC (LSE: GLEN) witnessed a rise of 2.47% followed by Fresnillo PLC (LSE: FRES) which gained around 2.42%. 

Commodity Update: The dollar strengthened on Tuesday after President Trump announced new tariffs, effective August 1, on nations including Japan and South Korea. Gold rose 0.14% to $3,347.40, silver gained 0.38% to $37.04, and copper edged up 0.13% to $9,830.45. However, Brent crude slipped 0.29% to $69.37 as investors weighed the impact of the tariffs alongside a larger-than-expected OPEC+ output increase for August. 

Our Stance: Global markets remained relatively steady as investors assessed the implications of the U.S. expanding its tariff campaign under President Trump, who warned 14 nations—including Japan and South Korea—of sharply higher import duties starting August 1. Meanwhile, oil prices eased amid concerns over the tariff impact on demand and a surprise OPEC+ output hike. In equities, European and global indices were mixed, while Goldman Sachs upgraded its S&P 500 outlook on expectations of Fed easing and strong large-cap fundamentals. Talks between the U.S. and Israel also suggested potential developments regarding the Gaza situation. 

FTSE 100 

The FTSE 100 is trading at 8,817.14, up 0.12%, as it nears a key resistance zone while staying close to its 21-day Simple Moving Average, signaling short-term indecision. However, the index continues to hold well above its 50-day SMA, reinforcing the broader bullish structure. The Relative Strength Index at 56.20 indicates neutral momentum, with room for either consolidation or renewed upside. Strong support around the 8,600 level remains a crucial buffer, likely attracting buyers on any pullback. Market sentiment stays cautiously positive, underpinned by ongoing sector rotation and macroeconomic developments influencing the near-term outlook. 

FTSE 100 Technical Chart, Source - EODHD/Others