Trade relief lifts markets, but investor caution lingers:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.67% on 29 July 2025.  

Macro Update: AstraZeneca posted strong Q2 results, driven by robust U.S. demand and newer medicines, helping ease concerns over potential U.S. tariffs and lifting its shares to a multi-month high. President Trump reaffirmed the U.S.–UK “special relationship” alongside PM Keir Starmer, though issued warnings on key policies. UK inflation pressures remain high as shop and food prices continued to climb, complicating BoE’s interest rate path. Games Workshop saw a near 30% jump in annual profits on strong Warhammer sales and Amazon tie-ups. Meanwhile, London markets dipped amid concerns over a lopsided U.S.–EU trade deal and prolonged retail weakness. The BoE is also expected to slow bond sales amid liquidity concerns and scrutiny over QT losses. 

Top Market Movers: Among top gainers on FTSE 100 index, Games Workshop Group PLC (LSE: GAW) witnessed a rise of 4.46% followed by Entain PLC (LSE: ENT) which gained around 2.60%. 

Commodity Update: The euro continued to struggle after the U.S.-EU trade deal largely favoured the U.S., dampening optimism for Europe’s economy. Gold saw a slight rise of 0.023% to $3,374.70, while silver jumped 0.27% to $38.31. Copper dipped 0.04% to $9,792.90. Brent crude gained 0.10% to $70.09, driven by supply concerns after President Trump shortened Russia’s war deadline and positive U.S. trade developments eased EU tariff fears, raising hopes for higher energy demand. 

Our Stance: Global sentiment remains cautious as U.S.–China trade talks continue in Stockholm, potentially leading to a 90-day tariff truce extension, even as broader concerns loom over Fed policy changes and central bank independence ahead of Jerome Powell’s potential exit. While bond investors appear more confident in a stable U.S. economic outlook, underpinned by soft inflation and a resilient labor market, equity and currency markets remain volatile, especially after the U.S.–EU deal imposed a 15% tariff—far higher than pre-Trump levels. Meanwhile, oil prices edged higher on hopes of easing trade tensions, though European leaders and markets remain wary of prolonged tariff pressures and their dampening effect on growth. 

FTSE 100 

The FTSE 100 is trading at 9,117.95, up 0.40%, staying above a key breakout level now acting as support. It holds above its 21-day and 50-day Simple Moving Averages, reflecting a steady short-term trend. The RSI at 68.72 indicates strong momentum, though minor consolidation is possible. A pullback toward 8,700 may occur as part of a normal correction, while the broader technical structure remains stable and supportive of the current trend. 

FTSE 100 Technical Chart, Source - EODHD/Others