Trade Deals Boost Market Sentiment as UK Signs FTA and Stocks Rise:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.46% on 23 July 2025.  

Macro Update: India and the UK are set to sign a long-anticipated free trade agreement during PM Modi’s visit, easing tariffs and enhancing market access, with implementation expected within a year. Meanwhile, M&S faced a sharp slowdown in food sales growth to 4.3% due to a cyberattack, expected to cost £300 million in lost profit. Prudential has begun searching for a successor to Chair Shriti Vadera, though no immediate departure is planned. The UK also imposed sanctions on 24 individuals and one firm involved in people smuggling, amid a 50% surge in migrant arrivals. On the markets front, the FTSE 100 hit a new high, supported by corporate updates and improved global sentiment following a major U.S.–Japan trade deal. 

Top Market Movers: Among top gainers on FTSE 100 index, Informa PLC (LSE: INF) witnessed a rise of 5.13% followed by JD Sports Fashion PLC (LSE: JD.) which gained around 3.99%. 

Commodity Update: The dollar remained weak on Wednesday after President Trump announced a trade deal with Japan, reducing a planned tariff from 25% to 15% and securing a $550 billion Japanese investment in the U.S. Gold slipped 0.24% to $3,335.60. In comparison, silver rose 0.20% to $39.63. Copper edged down 0.13% to $9,902.60. Brent crude gained 0.31% to $68.80, limited by fading optimism over the upcoming EU-China summit. 

Our Stance: Global sentiment improved notably after President Trump secured a major trade deal with Japan, cutting auto and other import tariffs significantly in exchange for a $550 billion investment pledge. This agreement eased fears of further U.S. trade levies, boosting U.S. stock futures and driving the S&P 500 to its eighth record close in a month. European markets also rallied, particularly automobile stocks, amid revived hopes of a potential U.S.–EU trade deal. Bond yields in the eurozone edged higher, reflecting easing risk aversion, while oil prices steadied after prior declines, supported by renewed optimism around global trade stability. 

FTSE 100 

The FTSE 100 is trading at 9,075.46, up 0.57%, and remains above a key breakout level now acting as support. The index is currently positioned above both the 21-day and 50-day Simple Moving Averages, reflecting a stable short-term trend. The Relative Strength Index (RSI) at 70.97 indicates elevated momentum, though some consolidation may occur in the near term. A potential pullback toward the 8,700 level could draw investor attention. With broader market conditions remaining steady, the FTSE 100 continues to show a constructive technical setup that may support further movement in the current direction. 

FTSE 100 Technical Chart, Source - EODHD/Others