Markets Lifted by U.S.-EU Trade Hopes and AI Gains, Though Tariffs Weigh on Sentiment:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 1.14% on 10 July 2025.  

Macro Update: British Prime Minister Keir Starmer and French President Emmanuel Macron are set to announce stricter migration measures, aiming to reinforce bilateral cooperation following a high-profile state visit. Domestically, UK housing market activity showed signs of stabilization post-tax hike, though price pressures persist. Meanwhile, recruiter PageGroup projected a sharp decline in operating profit due to continued European weakness, and the UK government opted against a zonal pricing model for electricity, instead prioritizing more controlled clean energy infrastructure planning. On the corporate front, Merck announced a $10 billion acquisition of UK-based Verona Pharma to strengthen its pipeline amid looming Keytruda patent expires. 

Top Market Movers: Among top gainers on FTSE 100 index, Anglo American PLC (LSE: AAL) witnessed a rise of 5.12% followed by Glencore PLC (LSE: GLEN) which gained around 4.48%. 

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: Global markets reflected mixed sentiment as optimism over a potential low-tariff trade deal between the U.S. and EU lifted European equities, with indices like the FTSE 100 and Germany’s DAX reaching record highs. Meanwhile, U.S. President Trump’s aggressive tariff actions, including a 50% duty on copper and Brazilian goods, weighed on oil prices and raised global economic concerns. Wall Street closed higher, driven by Nvidia's brief $4 trillion valuation milestone and Fed minutes suggesting rate cuts later in the year despite modest inflation risks from tariffs. Bitcoin also surged to a record high near $112,000 amid rising institutional interest, while euro zone bond yields dipped slightly as investors awaited progress on U.S.-EU trade talks. 

FTSE 100 

The FTSE 100 climbed 1.18% to trade at 8,971.56, breaking above a key resistance zone and signalling potential for further upside. The index remains firmly above its 21-day Simple Moving Average, indicating short-term bullish momentum, while holding well above the 50-day SMA supports a broader uptrend. The Relative Strength Index at 70.32 suggests strong momentum, although it also indicates the possibility of near-term consolidation. Key support at 8,600 may attract buying on dips, acting as a cushion during pullbacks. Overall, market sentiment remains cautiously optimistic, bolstered by sector rotation and supportive macroeconomic indicators that are shaping the near-term trajectory. 

FTSE 100 Technical Chart, Source - EODHD/Others