UK and Global Markets Gain Amid Growth Optimism, But Caution Persists:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.71% on 16 May 2025.  

Macro Update: Britain is poised for several pivotal developments, including the upcoming release of its first comprehensive audit on relations with China, aimed at balancing commercial interests with national security concerns. The country is also set to debate landmark assisted dying legislation, which passed an initial vote and could mark a major social reform. Land Securities reported a return to annual profit, buoyed by strong London retail and occupancy trends, while UK markets rose on better-than-expected Q1 GDP growth, offering cautious optimism amid global uncertainties. Separately, new media reforms will allow foreign state investors to own up to 15% of UK newspaper publishers and broaden regulatory oversight to digital platforms. 

Top Market Movers: Among top gainers on FTSE 100 index, British American Tobacco PLC (LSE: BATS) witnessed a rise of 3.51% followed by GSK PLC (LSE: GSK) which gained around 2.94%. 

Commodity Update: The dollar declined alongside U.S. Treasury yields on Friday after weaker-than-expected U.S. economic data fueled expectations of further Federal Reserve rate cuts this year. Gold fell 0.12% to $3,222.40, silver dropped 0.08% to $32.65, and copper edged down 0.08% to $9,579.75. Meanwhile, Brent crude rose 0.26% to $64.70, heading for a weekly gain of over 1% as optimism over U.S.-China trade talks outweighed concerns about Iranian supply returning. 

Our Stance: Global markets showed mixed signals as Wall Street ended flat, with Cisco rising on a strong forecast and UnitedHealth falling due to a criminal probe. The S&P 500 has rebounded 18% since April 8, recovering its 2025 losses amid optimism over potential U.S. trade deals. Oil prices dipped slightly—Brent at $64.24 and WTI at $61.32—under pressure from increased OPEC+ supply and prospects of an Iranian nuclear deal, though weekly gains remain intact due to easing U.S.-China tensions. European equities hit a seven-week high, led by Richemont and strong healthcare gains, with the STOXX 600 up 0.6%. Despite the rally, caution prevails given lingering tariff concerns and high equity valuations, potentially capping near-term upside. 

FTSE 100 

The FTSE 100 is trading near 8,658.44, posting a modest gain of 0.29% and holding above a key support zone, reflecting underlying strength and bullish sentiment. A recent bullish candlestick pattern signals upward momentum, while the index trading above the 50-period Simple Moving Average supports a positive technical outlook. The 14-period RSI has climbed to 63.00, indicating improving market participation and buying interest. Although the short-term trend remains cautiously optimistic, a decisive breakout above the immediate resistance level could reinforce the bullish bias. Sustained demand may drive further gains in the upcoming sessions, keeping the outlook favourable.​ 

FTSE 100 Technical Chart, Source - EODHD/Others