Markets rise on trade relief and strong earnings, though caution persists:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was flat around ~0.01% on 29 May 2025.  

Macro Update: UK vehicle production fell 15.8% year-on-year in April to 59,203 units, marking the worst start to a year since 2009 due to weak export demand and Easter timing. The government announced plans to merge pension schemes into ‘megafunds’ with at least £25 billion in assets by 2030 to boost domestic investment. Marks & Spencer’s food sales rose 10.8% despite a cyberattack, while Nationwide reported a 30% profit surge to £2.3 billion following its Virgin Money acquisition. UK equities edged higher on easing trade tensions and recent US-China deals. The UK called a U.S. court ruling against Trump’s tariffs a domestic matter but emphasized its proactive trade efforts. 

Top Market Movers: Among top gainers on FTSE 100 index, EASYJET PLC (LSE: EZJ) witnessed a rise of 2.89% followed by STANDARD CHARTERED PLC (LSE: STAN) which gained around 2.37%. 

Commodity Update: A U.S. federal court blocked President Trump’s proposed "Liberation Day" tariffs, ruling he exceeded his authority. The decision boosted the dollar against haven currencies. Gold dropped 0.94% to $3,291.30, while silver rose 0.25% to $33.34. Copper gained 0.40% to $9,604.95. Brent crude climbed 1.00% to $65.55, lifted by improved market sentiment following the court’s rejection of the broad import duties plan. 

Our Stance: Global markets responded positively after the U.S. Court of International Trade blocked most of former President Trump's proposed tariffs, ruling that only Congress holds the authority to regulate foreign commerce—undermining Trump's trade leverage and boosting investor sentiment. The ruling also lifted emerging market equities, with the MSCI index up 0.5%. Meanwhile, governments in Asia and Europe are scaling back U.S. dollar debt issuance, citing rising U.S. yields, FX volatility, and fiscal concerns, marking the first such decline in three years. Overall, the court decision provided near-term relief to markets, though geopolitical and financial system uncertainties persist. 

FTSE 100: The FTSE 100 edged lower by 0.10% to around 8,717.70 but maintains a bullish bias supported by positive market sentiment. The index remains above its 50-period Simple Moving Average, reflecting underlying strength. However, a recent bearish candlestick and a decline in the 14-period RSI to 59.76 suggest waning momentum and potential short-term fatigue. Despite this, the broader trend remains intact as long as key support levels hold. A breakout above immediate resistance could reignite bullish momentum, but caution is warranted. Traders should watch for further signs of consolidation or weakness that may challenge the prevailing upward trend.​ 

FTSE 100 Technical Chart, Source - EODHD/Others