Markets Rebound Amid Middle East Ceasefire; UK Eyes Defence Boost and Economic Reforms:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.18% on 24 June 2025.  

Macro Update: UK headlines reflect a busy week across politics, economy, and markets. PM Keir Starmer pledged to raise defence spending to 5% of GDP by 2035 in line with NATO goals, while the CMA may impose tougher rules on Google to ensure fairer competition. Grocery inflation hit 4.7%, pressuring consumers, and Reform UK proposed tax-exempt residency permits for wealthy migrants. AstraZeneca secured U.S. approval for a new lung cancer drug, and UK markets remained flat amid Middle East tensions. Meanwhile, a memorial plan for Queen Elizabeth II was unveiled for St James’s Park, featuring statues and redesigned gardens. 

Top Market Movers: Among top gainers on FTSE 100 index, EasyJet PLC (LSE: EZJ) witnessed a rise of 6.67% followed by JD Sports Fashion PLC (LSE: JD.) which gained around 5.63%. 

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 showed signs of optimism as a ceasefire between Israel and Iran, announced by U.S. President Donald Trump, eased fears of a broader Middle East conflict, lifting risk sentiment across equities. Wall Street rallied on hopes of a potential Fed rate cut in July, with consumer discretionary stocks, led by Tesla, boosting gains. Meanwhile, European and emerging market equities also rebounded, and oil prices tumbled to two-week lows as concerns over disruptions in the Strait of Hormuz receded. Despite lingering geopolitical caution following reports of renewed Israeli strikes, investors broadly welcomed the ceasefire and signs of de-escalation. 

FTSE 100 

The FTSE 100 is currently trading at 8,789.06, up 0.35%, approaching a key resistance zone while facing slight pressure below its 21-day Simple Moving Average. Despite this, the index remains above the 50-day SMA, indicating sustained bullish momentum in the broader trend. The RSI at 53.67 suggests steady strength, though short-term consolidation may occur. Immediate support lies at 8,600; maintaining this level could open the door for further upside, while a break below might trigger a minor correction. Market sentiment continues to be shaped by sectoral shifts and broader macroeconomic signals, keeping the medium-term outlook cautiously optimistic.​ 

FTSE 100 Technical Chart, Source - EODHD/Others