Markets steady as UK resilience and easing trade tensions lift global sentiment:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.27% on 14 May 2025.  

Macro Update: The Bank of England’s Catherine Mann held off on pushing for another rate cut, citing stronger-than-expected resilience in the UK labour market, despite signs of moderation. Burberry announced plans to cut 1,700 jobs, or 20% of its workforce, as part of a turnaround effort, lifting its shares by 8%. Aviva’s £3.7 billion bid for Direct Line faces scrutiny from the UK antitrust authority, while GSK agreed to buy liver disease drug efimosfermin for up to $2 billion. British stocks closed mixed amid concerns over inflation and labour data, with FTSE 100 flat and midcaps up 0.6%. Spirax Group shares fell over 5% following weaker margins and reduced project demand in Asia. 

Top Market Movers: Among top gainers on FTSE 100 index, Entain PLC (LSE: ENT) witnessed a rise of 3.14% followed by Mondi PLC (LSE: MNDI) which gained around 2.69%. 

Commodity Update: The U.S. dollar steadied Wednesday after its sharpest drop in over three weeks, driven by weaker U.S. inflation data that strengthened hopes for Fed rate cuts. Meanwhile, easing global trade tensions also supported market sentiment. Gold slipped 0.34% to $3,236.60, silver fell 0.92% to $32.79, and copper dipped 0.31% to $9,578.40. Brent crude edged up 0.10% to $66.53 amid a U.S.-China tariff truce and a weaker dollar. 

Our Stance: Global markets are navigating a cautiously optimistic phase as a temporary U.S.-China trade truce and softer U.S. inflation data have lifted sentiment. Wall Street gained early in the week, driven by a significant easing of tariffs—U.S. rates on Chinese imports fell to 30% from 145%, while China reduced its duties to 10% from 125%—signaling efforts to avoid a broader economic slowdown. While U.S. futures were flat midweek, Asian equities advanced and the S&P 500 turned positive for the year. Meanwhile, benign inflation data (CPI up 0.2% vs. 0.3% expected) supports the case for potential Fed rate cuts. The dollar stabilized after a sharp drop, and oil prices declined on expectations of rising inventories, with traders awaiting OPEC’s report. 

FTSE 100 

The FTSE 100 is trading around 8,597.60, posting a marginal loss of 0.06% but maintaining strength above a crucial support level, signalling resilience and underlying bullish sentiment. A recent bullish candlestick pattern highlights continued upward momentum, while the index’s position above the 50-period Simple Moving Average reinforces a positive technical structure. The 14-period RSI has climbed to 59.84, reflecting improving market strength and buying interest. Although the short-term trend remains cautiously optimistic, traders should watch for a decisive breakout above nearby resistance to validate a stronger bullish outlook. Sustained momentum could pave the way for further gains in upcoming sessions.​  

FTSE 100 Technical Chart, Source - EODHD/Others