Markets rise as policy shifts, easing tensions, and rate hopes support investor 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 0.50% on 27 June 2025.  

Macro Update: UK Prime Minister Keir Starmer has scaled back controversial welfare cuts after facing strong opposition from over 100 Labour MPs, aiming to avoid a parliamentary defeat. Meanwhile, Heathrow Airport raised its 2025 revenue forecast to £3.61bn on strong long-haul travel demand, despite challenges in business routes. The UK government rejected a £25bn Moroccan renewable energy project, citing preference for domestic solutions, and Centrica is reportedly set to acquire a 15% stake in the Sizewell C nuclear project. UK stock indexes rose, with midcaps hitting a 10-month high, while Bank of England Governor Andrew Bailey flagged inflation concerns and a slowing labour market, suggesting a gradual path to interest rate cuts. 

Top Market Movers: Among top gainers on FTSE 100 index, JD Sports Fashion PLC (LSE: JD.) witnessed a rise of 6.51% followed by Standard Chartered PLC (LSE: STAN) which gained around 2.71%. 

Commodity Update: The dollar drifted near 3.5-year lows against the euro and pound on Friday, pressured by expectations of deeper U.S. rate cuts and uncertainty over trade deals ahead of July tariffs. Gold slipped 1.00% to $3,314.70, silver fell 0.55% to $36.45, and copper eased 0.17% to $9,897.10. Brent crude rose 0.50% to $68.07, supported by firm U.S. demand despite fading Middle East supply concerns. 

Our Stance: Global markets are experiencing cautious optimism amid easing geopolitical tensions and mixed economic signals. Wall Street rallied as the Israel-Iran ceasefire held and soft inflation data supported hopes of Fed rate cuts, despite limited consensus within the central bank. Meanwhile, easing U.S.-China trade tensions lifted European equities, though concerns linger over Trump’s proposed retaliatory tax and tariffs, which could unsettle financial markets. Diverging expectations on future Fed policy, including speculation about leadership changes, highlight ongoing uncertainty. Oil prices declined sharply, reflecting diminished supply fears, while investor sentiment remains sensitive to political and economic developments. 

FTSE 100 

The FTSE 100 inched higher by 0.14% to close at 8,783.80, nearing a crucial resistance area while still trading slightly below its 21-day Simple Moving Average, suggesting mild short-term pressure. However, the index remains above its 50-day SMA, reinforcing the broader bullish structure. The RSI at 53.62 reflects moderate momentum, indicating a potential consolidation phase. Key support is established at 8,600, and maintaining levels above this could attract renewed buying interest. Market sentiment remains cautiously positive, shaped by sectoral rotation and shifting macroeconomic signals influencing investor positioning.  

FTSE 100 Technical Chart, Source - EODHD/Others