UK Borrowing Rises as U.S. Tech Fuels Rally Amid Global Trade Tensions:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, was flat around 0.03% on 22 July 2025.  

Macro Update: Britain’s public borrowing rose to £20.7 billion in June, exceeding forecasts due to inflation-linked debt costs, raising speculation of tax hikes. Shell, Aker BP, and Enbridge exited a climate initiative after being told net zero goals would halt new oil and gas projects. AstraZeneca plans a $50 billion U.S. expansion to boost manufacturing and R&D, aiming for $80 billion in annual revenue by 2030. The UK signed a strategic AI partnership with OpenAI, while the FTSE 100 rose 0.2% on mining gains. Meanwhile, a BP-chartered tanker left Nayara Energy’s Indian port without loading, signalling the impact of new EU sanctions. 

Top Market Movers: Among top gainers on FTSE 100 index, Compass Group PLC (LSE: CPG) witnessed a rise of 5.59% followed by Centrica PLC (LSE: CNA) which gained around 3.93%. 

Commodity Update: The dollar remained range-bound Tuesday after an early-week dip, as investors awaited developments in trade talks before the August 1 tariff deadline. Gold edged down 0.11% to $3,402.60, silver slipped 0.54% to $39.11, and copper fell 0.32% to $9,841.10. Brent crude eased 0.35% to $68.97 amid concerns that escalating trade tensions between the U.S. and the EU could dampen fuel demand and slow economic growth. 

Our Stance: Global markets are displaying mixed trends as U.S. indices like the S&P 500 and Nasdaq hit record highs, supported by gains in Alphabet and Tesla ahead of major earnings reports and hopes for trade deals to offset tariff risks. Meanwhile, European and Asian markets declined due to weak earnings, trade tensions, and political concerns—such as central bank independence in Thailand. Oil prices dipped on fears that trade conflicts may curb demand, and currency markets stayed cautious ahead of the August 1 U.S. trade deadline. In contrast, crypto stocks rallied as ether surged following the U.S. passing a stablecoin regulation bill, signaling investor interest in DeFi alternatives. 

FTSE 100 

The FTSE 100 is trading at 8,870.56, up 0.05%, and remains comfortably above a key breakout level that now acts as support. The index is sustaining its position above both the 21-day and 50-day Simple Moving Averages, reinforcing the strength of its ongoing uptrend. An RSI of 66.88 reflects strong buying momentum, although some short-term consolidation cannot be ruled out. A potential pullback toward the 8,700 zone may offer renewed buying opportunities. Backed by favourable macroeconomic conditions and robust technical indicators, the FTSE 100 remains well-positioned for further upside in the near term, attracting investor confidence. 

FTSE 100 Technical Chart, Source - EODHD/Others