Markets under pressure from Middle East tensions, inflation risks, and economic uncertainty:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.44% on 16 June 2025.  

Macro Update: Britain has sent additional jets to the Middle East as a precaution to protect its bases amid rising tensions between Israel and Iran, though Finance Minister Rachel Reeves clarified this is not direct military support. UK home asking prices saw their largest June drop in 14 years, down 0.3%, driven by high listings and recent stamp duty hikes. The UK and Canada formed a trade working group to counter U.S. tariffs, aiming to submit proposals within six months. Jaguar Land Rover cut its FY26 EBIT margin forecast to 5–7% from 10%, citing global auto sector uncertainty and expects near-zero free cash flow. Meanwhile, the FTSE 100 dipped 0.5% from recent highs as geopolitical tensions weighed on markets, though energy stocks helped cushion the fall. 

Top Market Movers: Among top gainers on FTSE 100 index, Entain PLC (LSE: ENT) witnessed a rise of 14.03% followed by Standard Chartered PLC (LSE: STAN) which gained around 2.75%. 

Commodity Update: The dollar strengthened on Monday as escalating Israel-Iran tensions fueled safe-haven demand, with investors cautious ahead of key central bank meetings. Fears of a wider conflict and potential disruption at the Strait of Hormuz—vital for global oil transit—heightened market risk. Gold rose 0.14% to $3,458.00, silver edged up 0.10% to $36.39, and copper gained 0.10%. Brent crude climbed 0.50% to $74.59, extending gains amid rising supply concerns in the Middle East. 

Our Stance: Global markets are navigating a fragile landscape as escalating tensions between Israel and Iran coincide with a critical week for central bank decisions, particularly the U.S. Federal Reserve's stance amid weakening labor signals and persistent inflation. While the S&P 500 had rebounded in recent months, geopolitical conflict triggered a broad selloff on Friday, with investors seeking safe-haven assets. Oil prices, though highly volatile, eased on Monday as production remained unaffected, yet fears persist over potential disruption to the Strait of Hormuz. Despite the turbulence, currency markets remained calm and bond yields in the euro zone edged higher on inflation concerns, suggesting cautious optimism but heightened sensitivity to further escalation or monetary surprises. 

FTSE 100: The FTSE 100 climbed 0.37% to trade at 8,883.61, marking a higher high that now acts as immediate resistance. The index remains above its 50-day Simple Moving Average, reinforcing bullish momentum in the broader trend. The RSI is at 67.68, showing strong momentum but nearing overbought levels, hinting at potential consolidation in the short term. Key support lies at 8,750—holding this level could support further upside, while a breakdown may prompt a modest pullback. Sector rotation and global macroeconomic cues will likely influence near-term moves. Overall, the technical structure remains positive, with further gains possible if support levels hold firm.​ 

FTSE 100 Technical Chart, Source - EODHD/Others