Trade tensions and UK slowdown dent market mood as investors pivot to crypto and safe havens:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.47% on 11 July 2025.  

Macro Update: Britain’s economy unexpectedly contracted for a second consecutive month in May, with GDP falling 0.1%, following a 0.3% drop in April, as weak industrial output and construction offset modest services growth. The data raises the risk of a Q2 contraction and has strengthened expectations of a Bank of England rate cut next month. The FTSE 100 fell 0.5%, weighed down by weak GDP and rising U.S.-led trade tensions. BP flagged weaker Q2 results due to lower oil and gas prices, though output is expected to rise. Politically, PM Keir Starmer accepted an invitation to meet U.S. President Trump during his upcoming UK visit. Meanwhile, Britain committed €163.3mn to Eutelsat, supporting Europe’s push to strengthen satellite capabilities. 

Top Market Movers: Among top gainers on FTSE 100 index, Fresnillo PLC (LSE: FRES) witnessed a rise of 2.94% followed by BP PLC (LSE: BP.) which gained around 2.05%. 

Commodity Update: The U.S. dollar strengthened Friday amid escalating global trade tensions, as President Trump announced new tariffs and proposed 15–20% blanket levies on most trade partners. Gold climbed 0.57% to $3,344.70, and silver rose 1.39% to $37.83. Copper edged up 0.09% to $9,708.75. Brent crude gained 0.28% to $68.83 after a 2% decline triggered by tariff concerns and lowered OPEC demand forecasts. 

Our Stance: Global markets reacted cautiously as U.S. President Donald Trump intensified tariff actions, announcing a 35% duty on Canadian imports and threatening blanket tariffs of 15%–20% on other trading partners, including the EU. These moves triggered declines in European equities and weighed on global sentiment, though some emerging Asian markets showed resilience, viewing the threats as tactical. Bitcoin rallied to a record high above $116,000, fueled by institutional demand and crypto-friendly U.S. policies. Meanwhile, political tension rose as the U.S. Senate prepared to vote on Trump’s proposed $9.4bn spending cuts, signaling fiscal tightening ahead. 

FTSE 100 

The FTSE 100 slipped 1.18% to trade at 8,964.81 but remains above a key resistance zone, indicating potential for further upside. The index is trading well above its 21-day Simple Moving Average, signaling short-term bullish momentum, while the 50-day SMA provides support for the broader uptrend. The Relative Strength Index at 68.85 shows strong momentum, though some near-term consolidation is possible. Key support at 8,600 may attract buying on dips. Overall, sentiment remains cautiously optimistic, supported by sector rotation and favourable macroeconomic indicators that are guiding the index’s near-term trajectory. 

FTSE 100 Technical Chart, Source - EODHD/Others