UK fiscal plans and global trade talks drive market optimism amid geopolitical uncertainty:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.20% on 11 June 2025.  

Macro Update: British Finance Minister Rachel Reeves is set to unveil a £2 trillion public spending plan to foster national renewal and outline Labour's political priorities, focusing on budgets and investments from 2026 to 2030. Meanwhile, the Bank of England has called for banks to use longer-term repurchase facilities to manage liquidity as central bank bond sales drain cash. In private equity, KKR and Stonepeak Partners raised their bid for Assura, offering £1.7 billion, a 39% premium to its previous price. The FTSE 100 rose ahead of Reeves' speech, while a British lawyer lost a bid to overturn corruption charges in a high-profile case involving Nigeria’s gas project dispute. 

Top Market Movers: Among top gainers on FTSE 100 index, BT Group PLC (LSE: BT.A) witnessed a rise of 2.33% followed by Prudential PLC (LSE: PRU) which gained around 2.08%. 

Commodity Update: The dollar held steady on Wednesday as investors welcomed a potential U.S.-China trade agreement framework, raising hopes of easing trade tensions. Gold rose 0.49% to $3,359.59, silver edged up 0.23% to $36.72, and copper gained 0.05% to $9,759.65. Brent crude dipped 0.36% to $66.63 amid cautious sentiment, with traders awaiting President Trump’s review and concerns over weak Chinese demand and rising OPEC+ output. 

Our Stance: Recent developments reflect a mix of economic and geopolitical factors that continue to impact markets. Elon Musk and U.S. President Donald Trump appear to be easing their social media tensions, signaling a possible cooling in their public feud. Meanwhile, U.S. inflation data suggests moderate consumer price increases, with tariffs likely contributing to underlying inflation pressures. On the global stage, U.S.-China trade talks show signs of progress, although challenges remain. Despite the hope for an eventual deal, markets are cautious as another tariff flare-up could arise. Oil prices are edging higher, driven by market reactions to the trade discussions, while the dollar and yuan remain stable amid these talks. 

FTSE 100: The FTSE 100 is currently trading at 8,853.08, up 0.12%, maintaining a bullish stance above its 50-day SMA. The RSI at 69.09 suggests strong momentum, though nearing overbought levels. While a short-term pullback or consolidation is possible, the overall trend remains positive, supported by AI and tech-driven optimism. Traders should watch for sustained moves above 8,750 (support) for further upside, while a break below could signal a brief correction. Sector rotation may influence near-term action, but the broader outlook stays constructive.​  

FTSE 100 Technical Chart, Source - EODHD/Others