Tariffs, Tech Gains & Cautious Optimism Shape Global and UK Market Sentiment:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.57% on 01 August 2025.  

Macro Update: UK markets saw mixed signals, with manufacturing inching closer to growth despite lingering impacts from trade tariffs and tax hikes, as the PMI rose to 48.0 in July—its highest since January. The Supreme Court's awaited car finance ruling could trigger multibillion-pound liabilities for banks like Lloyds and Close Brothers. Meanwhile, the government is considering Heathrow expansion to spur growth, aided by sustainable aviation fuel usage. Equities declined amid Trump’s fresh tariffs and drug pricing pressure on healthcare stocks, while the Bank of England faces a potential policy split over interest rate cuts. On a brighter note, Pearson expects stronger H2 growth driven by expanding AI-powered education tools. 

Top Market Movers: Among top gainers on FTSE 100 index, Rentokil Initial PLC (LSE: RTO) witnessed a rise of 10.56% followed by Rolls-Royce Holdings PLC (LSE: RR.) which gained around 10.32%. 

Commodity Update: The U.S. dollar is on track for its strongest weekly gain in nearly three years, bolstered by President Donald Trump's announcement of new tariffs on multiple trade partners. The move raised concerns over global demand, particularly for oil. In commodities, gold dipped 0.28% to $3,339.65, silver fell 0.18% to $36.07, copper rose 0.19% to 9,629.5, and Brent crude declined 0.11% to $71.65 per barrel. 

Our Stance: Global markets are navigating heightened uncertainty as U.S. President Donald Trump imposes steep tariffs on dozens of key trading partners, including Canada, Brazil, India, and Taiwan, signaling a more aggressive shift in trade policy that could disrupt global supply chains. While Wall Street futures dipped in response, Apple defied the broader sentiment with a 2% premarket rise on strong quarterly results and robust iPhone sales. Meanwhile, Europe is accelerating efforts to build independent scientific data systems amid growing unease over the U.S. retreat from global data-sharing and research commitments. Overall, the mood remains cautious with investors closely watching trade dynamics, tech resilience, and upcoming jobs data for further direction. 

FTSE 100 

The FTSE 100 is trading at 9,067.33, down 0.71%, while staying above a key breakout level that now serves as support. The index remains above both the 21-day and 50-day Simple Moving Averages, reflecting a stable short-term trend. The Relative Strength Index (RSI) is at 59.69, showing a slight loss in momentum, and a brief consolidation phase may follow. A pullback toward the 8,700 level is possible, though the overall structure continues to support the potential for upward movement once consolidation is complete. 

FTSE 100 Technical Chart, Source - EODHD/Others