UK Steady on Cooling Inflation; Global Markets Wary Amid Tensions and Mixed U.S. Data:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.14% on 18 June 2025.

Macro Update: UK inflation eased to 3.4% in May, aligning with expectations and reinforcing views that the Bank of England will hold interest rates steady, even as global energy markets remain volatile. Meanwhile, the UK’s National Electricity System Operator projected adequate winter supply supported by gains in storage, gas, and renewables. In corporate updates, Ocado expanded its tech-driven grocery partnership in Spain despite investor concerns, while PZ Cussons lowered its profit outlook due to weak U.S. sales and is exiting its Nigerian joint venture through a $70 million divestment.

Top Market Movers: Among top gainers on FTSE 100 index, Melrose Industries PLC (LSE: MRO) witnessed a rise of 3.33% followed by Entain PLC (LSE: ENT) which gained around 2.39%.

Commodity Update: The U.S. dollar remained firm against major currencies on Wednesday, supported by safe-haven demand amid rising tensions between Israel and Iran. Investors remained cautious ahead of the Federal Reserve's interest rate decision. Meanwhile, gold edged down 0.15% to $3,401.45, silver rose 0.09% to $37.24, and copper gained 0.16% to $9,693.55. Brent crude climbed 0.25% to $76.64, extending gains on supply concerns from the Middle East conflict.

Our Stance: Global markets remained cautious amid rising geopolitical tensions and mixed U.S. economic data. The Israel-Iran conflict, now in its sixth day, escalated further with the U.S. deploying additional military assets and President Trump calling for Iran’s unconditional surrender, keeping risk sentiment subdued. Concurrently, U.S. retail sales dropped 0.9% in May and industrial production unexpectedly contracted, adding uncertainty ahead of the Fed's policy decision. While equity markets declined and volatility rose, oil prices eased slightly following a prior spike, and gold edged lower as investors awaited Fed signals. Asian currencies weakened modestly, reflecting broader market hesitancy.

FTSE 100: The FTSE 100 climbed 0.13% to trade at 8,845.90, marking a higher high that now acts as immediate resistance. The index remains above its 50-day Simple Moving Average, reinforcing bullish momentum in the broader trend. The RSI is at 61.78, showing strong momentum but nearing overbought levels, hinting at potential consolidation in the short term. Key support lies at 8,750—holding this level could support further upside, while a breakdown may prompt a modest pullback. Sector rotation and global macroeconomic cues will likely influence near-term moves. Overall, the technical structure remains positive, with further gains possible if support levels hold firm.​

FTSE 100 Technical Chart, Source - EODHD/Others