Tech strength and easing trade tensions ignite global market rally and risk-on sentiment:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.85% on 02 May 2025.  

Macro Update:  Shell beat expectations despite a 28% YoY drop in Q1 profit to $5.58bn, maintaining its share buyback pace in contrast to BP’s reduction. Standard Chartered posted a 10% profit rise to $2.1bn, driven by strong fee-based income, but flagged tariff-related credit risks. NatWest reported a 36% surge in Q1 profit, benefiting from stronger deposit margins and loan growth, prompting a return target upgrade. Meanwhile, the UK’s Debt Management Office announced a new 2056 gilt issuance, and the FTSE ended flat as investors digested mixed earnings, with Rolls-Royce gaining 1.7% on tariff resilience optimism. 

Top Market Movers: Among top gainers on FTSE 100 index, Haleon PLC (LSE: HLN) witnessed a rise of 3.86% followed by Melrose Industries PLC (LSE: MRO) which gained around 3.01%. 

Commodity Update: The U.S. dollar is on track for a third weekly gain, buoyed by encouraging trade talks and strong economic data. Gold rose 1.05% to $3,256.00, while silver dipped 1.34% to $32.62. Copper climbed 1.78% to $9,370.20. Brent crude gained 0.60% to $62.51 after China expressed openness to dialogue with the U.S., sparking optimism over easing trade tensions. 

Our Stance: Global markets rallied on renewed risk appetite, fueled by strong earnings from U.S. tech giants and optimism over easing U.S.-China trade tensions. Microsoft surged 7.6% on bullish Azure growth, temporarily overtaking Apple as the world’s most valuable firm, while Meta rose 4.2% on strong ad revenues—lifting the Dow and S&P 500 to their eighth straight session of gains. European stocks followed suit, with the STOXX 600 up 1%, and Asian markets, led by Taiwan, surged as the Taiwan dollar saw a record 3.8% daily gain. The U.S. dollar weakened against major currencies, reflecting investors’ pivot toward riskier assets. Overall, markets appear to be pricing in a more stable macro backdrop driven by tech strength and geopolitical de-escalation. 

FTSE 100 

The FTSE 100 rose 0.85% on Friday to 8,569.29, holding firmly above a key support zone. A recent bullish candlestick pattern and its position above support hint at a possible bullish reversal. The 14-period RSI has climbed to 59.99, reflecting improving sentiment, while the index trades above its 50-period SMA, indicating sustained bullish momentum. A decisive breakout above nearby resistance is needed to confirm a short-term bullish trend amid a mixed technical outlook.​ 

FTSE 100 Technical Chart, Source - EODHD/Others