UK resets with reforms while global markets balance trade talks and tech diplomacy:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.19% on 21 July 2025.  

Macro Update: Britain announced sweeping reforms to water regulation following public outrage over sewage pollution, with Thames Water on the brink of collapse under £17bn debt. BP named Albert Manifold as its new chairman amid a strategic overhaul, while consumer confidence fell sharply due to job insecurity and high living costs. The government also launched a review of the state pension age and sanctioned Russian cyber operatives over espionage activities. Meanwhile, Wall Street futures rose on trade deal optimism, European shares remained flat ahead of tech earnings and ECB policy updates, and emerging market assets steadied amid tariff concerns and Fed-related uncertainty. 

Top Market Movers: Among top gainers on FTSE 100 index, Antofagasta PLC (LSE: ANTO) witnessed a rise of 3.21% followed by Glencore PLC (LSE: GLEN) which gained around 2.80%. 

Commodity Update: The Japanese yen strengthened on Monday, bolstered by rising global political uncertainty as investors flocked to safe-haven assets. With risk sentiment weakening, the yen's stability was reaffirmed. Precious metals saw gains: gold rose 0.53% to $3376.40, silver increased 0.25% to $38.56, and copper advanced 0.77% to $9,864.90. Brent crude edged up 0.01% to $69.34, as traders assessed the impact of European sanctions on Russian oil and potential tariffs. 

Our Stance: The global landscape reflects a delicate balance between geopolitical pressure and strategic economic engagement. U.S. Commerce Secretary Howard Lutnick’s confidence in securing a trade deal with the EU before the August 1 tariff deadline signals a last-minute push to avoid escalatory measures that could disrupt global trade. firms are navigating geopolitical tensions to preserve market access and supply chain links. Together, these developments suggest that while political rhetoric around tariffs and national security remains strong, economic pragmatism continues to guide crucial decisions on both trade and technology fronts. 

FTSE 100 

The FTSE 100 is trading at 8,989.75, down 0.03%, yet remains well above a key breakout level now serving as support. The index is holding firmly above both the 21-day and 50-day Simple Moving Averages, indicating strength in the ongoing uptrend. The RSI at 64.67 suggests strong buying momentum, though a short-term consolidation is possible. A pullback toward the 8,700 level may attract renewed interest. With supportive macro conditions, the FTSE 100 appears poised for further near-term gains. 

FTSE 100 Technical Chart, Source - EODHD/Others