Oil prices Grew Amid Ouster of Syria's Assad:

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Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.27% on 09 December 2024. Energy, Basic Materials & Financials sector demonstrated a substantial growth. Moreover, Real Estate, Technology & Industrials sector faced a significant decline. 

Macro Update:  Britain's finance minister, Rachel Reeves, is seeking to repair and strengthen economic ties with the European Union, emphasizing that reducing trade barriers would benefit growth for both sides. This marks a significant shift under the Labour government, which has prioritized improving relations with the EU after taking office in July, following years of strained ties during the Brexit process. However, the domestic economy faces challenges, with demand for workers plummeting to its lowest level since August 2020, largely due to the impact of recent tax increases outlined in the new government's budget. On a more positive note, the housing market has demonstrated resilience, with house prices rising by 1.3% in November to a record £298,083, representing the strongest annual growth in two years at 4.8%. Nonetheless, concerns over affordability remain as buyers navigate higher costs amidst broader economic uncertainty. 

Top Market Movers: Among top gainers on FTSE 100 index, Antofagasta PLC (LSE: ANTO) witnessed a rise of 4.47% followed by Rio Tinto PLC (LSE: RIO) which gained around 4.31%. 

Commodity Update: The U.S. dollar weakened on Monday as investors awaited crucial inflation data this week, particularly the consumer price index (CPI), for insights into potential interest rate moves. Geopolitical tensions in Syria, following the ousting of President Bashar al-Assad, added to market uncertainty. In commodities, gold gained 0.25% to $2,666.20, silver rose 0.02% to $31.59, and copper climbed 0.30% to $9,125.50. Brent crude edged up 0.30% to $71.40, as Middle East tensions overshadowed concerns about weak Chinese demand, highlighted by Saudi Aramco's price cuts to Asian buyers. The market is focused on Wednesday’s CPI report for economic signals. 

Our Stance: Britain is undergoing significant fiscal and economic shifts, with Finance Minister Rachel Reeves recently abolishing the "non-dom" tax rules that benefitted wealthy foreigners, sparking questions about potential capital flight to low-tax regions and its financial implications. Meanwhile, Britain and Qatar are set to sign a memorandum of understanding focusing on fintech and green finance, reflecting efforts to strengthen financial sector cooperation. On the market front, Britain's FTSE 100 extended its rally for a fifth session, bolstered by rising oil prices that lifted energy stocks, while the FTSE 250 reached its highest level since late October, aided by positive performance from SSP's European busi Global markets displayed a cautiously optimistic tone on Monday, as the euro held firm against the dollar, with investors awaiting U.S. inflation data and a likely Federal Reserve rate cut next week. European equities climbed to six-week highs, fueled by strong performances in mining, luxury goods, and automotive sectors, following China's announcement of monetary easing measures to counter its economic slowdown. The German DAX hit record highs, reflecting strong investor sentiment. Oil prices also surged over 1%, driven by expectations of increased demand following China’s shift toward looser monetary policy. The coordinated optimism in global markets underscores the positive impact of China’s economic stimulus, which is seen as a stabilizing force for global growth. However, the focus on U.S. inflation data highlights lingering concerns about the trajectory of monetary policies in major economies, leaving room for market volatility. 

FTSE 100 

The FTSE 100 closed at 8,308.61, down 0.49%, forming a bearish candlestick pattern, yet investor sentiment remains positive. The index is trading above both the 21-period and 50-period Simple Moving Averages (SMAs), which now act as key support levels, suggesting potential for further gains. The Relative Strength Index (RSI) stands at 57.94, reflecting ongoing bullish momentum and the possibility of the uptrend continuing. On the weekly chart, the index closed at 8,308.61, up 0.21%, above the 50-period SMA at 8,047.08, with additional support at 7,932. Immediate resistance is at 8,400, with a breakout potentially signalling a bullish reversal. A drop below 8,020 could signal further downside. Investors should monitor these support and resistance levels for signs of consolidation or continued upside momentum.