Markets Show Resilience Amid Growth Shock, Oil Slide, and Gold Volatility:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.15% on 01 May 2025.  

Macro Update:  In April, British manufacturing exports saw their sharpest drop since 2020, with falling demand from key markets like the U.S., Europe, and China amid rising cost pressures and U.S. tariff impacts, as reflected in the S&P Global PMI of 45.4. Lloyds Banking Group’s profits declined 7% in Q1, partly due to a £100mn provision linked to trade tariffs, while Rio Tinto shareholders rejected a review of its dual-listed structure. The London Stock Exchange Group outperformed expectations with 7.8% Q1 income growth, and Persimmon maintained its annual home completion target but flagged concerns over economic uncertainty impacting demand. Separately, UK finance minister Rachel Reeves is under investigation for potentially failing to register financial interests. 

Top Market Movers: Among top gainers on FTSE 100 index, Whitbread PLC (LSE: WTB) witnessed a rise of 4.55% followed by Entain PLC (LSE: ENT) which gained around 4.05%. 

Commodity Update: The dollar steadied Thursday despite weak U.S. data, as hopes of easing trade tensions supported sentiment. The yen remained flat ahead of Japan's central bank meeting. Gold fell 2.12% to $3,248.80, silver slipped 1.11% to $32.17, while copper rose 0.68% to $9,176.20. Brent crude edged up 0.30% to $61.22 after prior losses sparked by potential Saudi supply increases and a Q1 contraction in the U.S. economy. 

Our Stance: Despite a surprise 0.3% contraction in U.S. GDP for Q1—the first in three years—the Dow and S&P 500 managed a late-session recovery, suggesting market resilience amid mixed economic signals. Oil prices continued their slide as concerns grew over Saudi Arabia potentially increasing output and weaker U.S. demand. Meanwhile, gold prices steadied after a recent rally driven by trade policy fears, still holding a 30% gain from November lows despite easing from record highs. Overall, markets appear to be adjusting to a fragile macro environment marked by growth uncertainty, shifting commodity dynamics, and geopolitical tensions. 

FTSE 100 

The FTSE 100 is trading at 8,484.20, down 0.13% on Thursday, holding above a key support zone. Despite a bearish candlestick pattern, the index’s position above support suggests a potential for a bullish reversal. The 14-period RSI has improved to 56.00, indicating strengthening sentiment. However, it's still below the 50-period Simple Moving Average, signalling ongoing downward pressure. A breakout above nearby resistance is needed to confirm a short-term bullish shift, with technical indicators showing a mixed outlook.​ 

FTSE 100 Technical Chart, Source - EODHD/Others