Markets waver as trade tensions and policy uncertainty temper global and UK optimism:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.74% on 30 May 2025.  

Macro Update: Bank of England policymaker Alan Taylor dismissed concerns over the sharp rise in UK inflation to 3.5% in April and reiterated his call for rate cuts, citing growth risks from U.S. trade tensions. Meanwhile, UK housing market expectations remained steady on hopes of lower borrowing costs, though a Reuters poll indicated the government may fall short of its 1.5 million homebuilding target by 2029. Ofgem announced that three gas firms will pay £8 million for failing emergency response targets. UK equities were mixed, with FTSE 100 slightly down and FTSE 250 up, as markets reacted to a U.S. court ruling against Trump’s broad tariffs. Separately, Ben & Jerry’s board labeled the Gaza conflict a genocide, intensifying its dispute with parent company Unilever. 

Top Market Movers: Among top gainers on FTSE 100 index, M&G PLC (LSE: MNG) witnessed a rise of 5.93% followed by BT Group PLC (LSE: BT.A) which gained around 2.91%. 

Commodity Update: The dollar held firm on Wednesday as upbeat U.S. economic data and expectations for strong tech earnings lifted sentiment. Easing trade tensions between the U.S. and Europe and calmer global bond markets added to the optimism. U.S. consumer confidence exceeded forecasts ahead of key jobs data. Gold rose 0.01% to $3,328.35, silver gained 0.33%, copper dipped 0.20%, and Brent crude increased 0.73% amid tighter Venezuelan export restrictions. 

Our Stance: Global markets remained volatile as investors reacted to conflicting U.S. court rulings on President Donald Trump’s tariffs—first blocked, then reinstated—creating renewed trade policy uncertainty. U.S. equities ended higher, buoyed by Nvidia’s earnings, though gains were capped by a 3.3% drop in Salesforce. Asian markets slipped and the dollar weakened further, heading for its fifth consecutive monthly decline amid tariff concerns and fiscal uncertainty. European shares also edged lower despite a strong monthly performance, while oil prices continued their decline for a second week, pressured by expectations of an OPEC+ supply. Overall, sentiment was cautious as markets struggled to find direction amid mixed legal and macroeconomic signals. 

FTSE 100: On Friday, the FTSE 100 rose 0.44% and is trading at 8,754.45, sustaining a bullish stance amid strong market sentiment. The index remains above its 50-period Simple Moving Average, reflecting underlying strength. A recent bullish candlestick and a rise in the 14-period RSI to 62.14 indicate growing momentum, hinting at potential short-term gains. The broader uptrend remains secure as long as key support levels are respected. A breakout above immediate resistance may trigger further upside. However, traders should stay alert for consolidation or early signs of weakness that could challenge the prevailing trend and alter near-term market direction.​  

FTSE 100 Technical Chart, Source - EODHD/Others