Markets Tread Cautiously Amid UK Housing Pause and Global Trade Uncertainty

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.03% on 07 July 2025.  

Macro Update: Britain's housing market remained subdued in June with flat monthly prices, although resilience was noted due to rising wages and expectations of BoE rate cuts. Investment sentiment among UK firms shifted away from the US amid tariff uncertainty, favouring domestic opportunities instead. Shell warned of weaker Q2 earnings due to underperformance in its chemicals division, while Finance Minister Rachel Reeves announced fresh funding for a carbon capture project to spur green jobs. BoE's Alan Taylor suggested immediate rate cuts to manage downside risks to growth. Meanwhile, Jeremy Corbyn signalled plans to form a new political party, and UK markets remained mixed as investors weighed corporate earnings updates and delayed US tariff hikes. 

Top Market Movers: Among top gainers on FTSE 100 index, 3I Group PLC (LSE: III) witnessed a rise of 2.41% followed by Standard Chartered PLC (LSE: STAN) which gained around 2.29%. 

Commodity Update: The U.S. dollar stayed near its lowest since 2021 versus the euro and its weakest since 2015 against the Swiss franc on Monday, as markets awaited trade headlines ahead of President Donald Trump's tariff deadline. Gold fell $0.82% to $3,319.10, silver slipped 0.37% to $36.99, copper declined 0.37% to $9,830.45, and Brent crude dropped 1.11% to $67.50 amid OPEC+ output hike concerns. 

Our Stance: Global markets opened on a cautious note as investors responded to renewed trade policy uncertainty from the U.S., with President Trump confirming higher tariff rates will be imposed from August 1 and letters sent to affected countries by July 9. The delay offers a temporary reprieve, hinting at ongoing negotiations, but fears of escalating trade tensions—especially targeting BRICS-aligned nations—kept sentiment muted. European and emerging market equities remained flat to weaker, while oil prices trimmed earlier losses despite an OPEC+ supply hike, supported by a still-tight physical market. Meanwhile, Tesla shares dipped amid political headlines surrounding Elon Musk’s new party plans, adding to market unease. 

FTSE 100 

The FTSE 100 is currently trading at 8,813.93, down 0.05%, as it approaches a key resistance zone while hovering near its 21-day Simple Moving Average—highlighting short-term indecision. Despite this, the index remains well above its 50-day SMA, indicating that the broader bullish trend is still intact. The Relative Strength Index stands at 56.74, suggesting neutral momentum and potential for consolidation. Strong support around 8,600 continues to act as a safety net, likely drawing buyers if price stability holds. Overall sentiment remains cautiously optimistic, supported by sectoral rotation and evolving macroeconomic cues shaping near-term market direction. 

FTSE 100 Technical Chart, Source - EODHD/Others