Peace Accord Ignites Global Market Rally; FTSE 100 Ticks Higher

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was trading rose around 0.68% on 16 June 2026.  

Macro Update: Global stocks rallied as a prospective U.S.-Iran peace deal to reopen the Strait of Hormuz pulled Brent crude down to $81. This eased energy inflation shocks, fueling a tech surge led by SpaceX's blockbuster IPO. Simultaneously, the Bank of Japan hiked rates to 1%, driving the Nikkei past 70,000.  

Top Market Movers: Among top gainers on FTSE 100 index, Rolls Royce Holdings PLC (LSE: RR.) witnessed a rise of 2.86% followed by Convatec Group PLC (LSE: CTEC) witnessed a rise of 2.55%. 

Commodity Update: The U.S. dollar remained close to its 10-day low on Tuesday as improving risk sentiment followed a preliminary agreement to end the conflict between the United States and Iran. Market participants are also monitoring upcoming central bank meetings in Japan and Australia for inflation and policy cues. Gold declined 0.28% to USD 4,338.70 per ounce, silver fell 0.87% to USD 69.57, and copper eased 0.26% to USD 13,728.00. Brent crude oil rose by USD 0.30 to USD 83.42 per barrel amid continued supply concerns surrounding the Strait of Hormuz. 

Our Stance: Our view remains cautiously optimistic, balancing a structural "risk-on" rotation against lingering global stagflationary pressures. While plunging Brent crude prices dramatically cool short-term energy inflation, tight monetary policies still constrain the real economy. We anticipate elevated cross-asset volatility as markets digest massive tech capital expansions and upcoming central bank meetings. 

FTSE 100: The FTSE 100  Index is trading around 10,500.90, continuing to consolidate near recent highs while maintaining its broader upward trajectory. Price action remains constructive, with the index holding above a key trend support area despite intermittent bouts of volatility. Immediate support is placed near 10,400.00, with the next support level seen around 10,200.00. On the upside, immediate resistance is located near 10,600.00, while a break above this area could open the way toward 10,800.00. The overall framework remains balanced, with recent trading activity suggesting resilience and keeping the near-term outlook cautiously positive.