Markets cautious on Middle East tensions; UK posts modest growth:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.16% on 23 June 2025.  

Macro Update: UK business activity saw modest growth in June as the Composite PMI rose to 50.7, driven by new orders in services, although job cuts and Middle East tensions weighed on sentiment. Britain stayed out of recent U.S. strikes on Iran but remains committed to defending allies. Meanwhile, the government is preparing to unveil a 10-year industrial strategy to boost innovation and job creation. Markets remained flat amid geopolitical uncertainty, with oil and gas stocks rising on higher crude prices. EnQuest aims to expand oil output via its $84 million Vietnam deal, while BP considers new leadership, reportedly eyeing former Centrica CEO Sam Laidlaw for the chair role. 

Top Market Movers: Among top gainers on FTSE 100 index, ConvaTec Group PLC (LSE: CTEC) witnessed a rise of 2.49% followed by Bunzl PLC (LSE: BNZL) which gained around 2.44%. 

Commodity Update: The U.S. dollar edged up on Monday as investors sought safety amid Middle East tensions and waited for Iran’s response to U.S. strikes on its nuclear facilities. Gold slipped 0.16% to $3,380.95, while silver rose 0.09% to $36.05. Copper dipped 0.21% to $9,634.40. Brent crude jumped 1.92% to $78.93, its highest since January, as U.S. support for Israeli attacks on Iran fueled supply concerns. 

Our Stance: Global markets remained cautious on Monday as investors closely monitored geopolitical tensions following U.S. airstrikes on Iran’s nuclear facilities and President Trump’s hints at regime change. Oil prices briefly surged to five-month highs on fears of disruption to the Strait of Hormuz but later pulled back, while energy stocks like Chevron and Exxon gained modestly. The U.S. dollar firmed on safe-haven demand, reflecting market nervousness, though movements were restrained as traders awaited Iran’s response. Emerging market stocks and currencies weakened amid rising uncertainty, with mixed performances across Middle Eastern markets and pressure on risk assets globally. 

FTSE 100: The FTSE 100 is trading at 8,773.09, down 0.02%, as it nears a key resistance zone while facing mild pressure below the 21-day Simple Moving Average. However, the index remains above its 50-day SMA, signalling sustained bullish momentum in the broader trend. The RSI stands at 51.78, reflecting steady strength and hinting at possible short-term consolidation. Immediate support is seen at 8,600; holding above this level may pave the way for further gains, while a breach could trigger a minor pullback. Overall sentiment remains influenced by sector rotation and global macroeconomic cues, keeping the medium-term outlook.​ 

FTSE 100 Technical Chart, Source - EODHD/Others