Trade Tensions and UK Contraction Weigh on Markets Amid Policy Shifts:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.36% on 14 July 2025.  

Macro Update: Burberry shows early signs of a turnaround under CEO Josh Schulman, with a smaller sales decline in Q2 despite ongoing challenges, as the brand refocuses on core British outerwear. AstraZeneca’s experimental drug baxdrostat achieved success in late-stage trials for treatment-resistant hypertension, with potential peak sales over $5 billion. Wizz Air exited its Abu Dhabi base to concentrate on Eastern Europe due to persistent Middle East instability and losses. UK Finance Minister Rachel Reeves plans regulatory reforms to support emission reduction projects, to be announced at the Mansion House speech. Meanwhile, the FTSE 100 pulled back from record highs amid concerns over weak domestic growth and U.S. tariff threats, despite logging its best weekly gain in two months. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 2.90% followed by Associated British Foods PLC (LSE: ABF) which gained around 2.83%. 

Commodity Update: The euro dropped to a three-week low Monday, and the Mexican peso weakened after President Trump threatened 30% tariffs on EU and Mexican imports starting August 1. Gold rose 0.27% to $3,373.15, silver gained 0.45% to $39.12, and copper edged up 0.13% to $9,681.35. Brent crude climbed 0.20% to $70.48 amid tariff tensions and potential new U.S. sanctions on Russia, extending its weekly gains. 

Our Stance: Global markets are navigating a volatile landscape as U.S. President Donald Trump intensifies trade tensions with plans to impose 30% tariffs on imports from the EU, Mexico, and potentially other key partners by August 1, prompting the EU and South Korea to seek negotiated deals. This tariff escalation, coupled with Trump's pledge to send Patriot missiles to Ukraine, adds to geopolitical uncertainty. Meanwhile, investor sentiment remains cautious—reflected in softer U.S. stock index futures—though Bitcoin surged past $120,000 on optimism around crypto regulation. Oil prices climbed on potential U.S. sanctions on Russia and higher Chinese imports, while German bond yields hit multi-year highs amid global debt concerns and rising Japanese yields. 

FTSE 100 

The FTSE 100 rose 0.36% to 8,973.52, staying above a key resistance zone and indicating scope for further upside. The index trades comfortably above its 21-day Simple Moving Average, reflecting strong short-term momentum. At the same time, the 50-day SMA supports the broader uptrend—the Relative Strength Index at 67.76 signals robust momentum, though minor consolidation may occur. Support near 8,600 could draw buyers during any dip. Market sentiment remains cautiously optimistic, backed by ongoing sector rotation and encouraging macroeconomic trends. These factors continue to shape the index’s near-term path, suggesting continued strength if external conditions remain supportive. 

FTSE 100 Technical Chart, Source - EODHD/Others