UK voting reform and global markets steady amid political shifts:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.32% on 17 July 2025.  

Macro Update: The UK government plans to extend voting rights to 16- and 17-year-olds in all national elections, aligning with Scotland and Wales and aiming to boost youth engagement after a record-low 2024 turnout. Labour data showed slower wage growth and a drop in employment, though less severe than initially reported. BoE policymaker Catherine Mann warned that strong demand without supply-side growth could destabilize the economy and called for reforms. The pound rose as revised data eased pressure for immediate rate cuts. Meanwhile, Diageo CEO Debra Crew stepped down amid turnaround efforts, and BAE Systems unveiled a new cost-effective drone to counter unmanned threats. 

Top Market Movers: Among top gainers on FTSE 100 index, Diploma PLC (LSE: DPLM) witnessed a rise of 6.95% followed by Ashtead Group PLC (LSE: AHT) which gained around 3.02%. 

Commodity Update: The dollar weakened on Thursday amid reports that U.S. President Trump might fire Fed Chair Jerome Powell, shaking market confidence. Although Trump denied the dismissal, he criticised Powell for not cutting rates. Gold slipped 0.42% to $3344.90, while silver edged up 0.04% to $38.13 and copper fell 0.01% to $9634.15. Brent crude rose 0.39% to $68.69, supported by strong economic data and easing trade tensions. 

Our Stance: U.S. political and economic developments continue to shape global sentiment, with President Trump asserting dominance over Congress by securing major budget cuts and influencing central bank policy through ongoing pressure on Fed Chair Powell. At the same time, his intervention helped advance landmark crypto legislation, marking progress toward digital asset regulation. Markets responded with cautious optimism, buoyed by TSMC's strong earnings that lifted chip stocks and supported a modest rally in equity futures. Oil prices edged higher amid easing trade tensions and renewed geopolitical risks in the Middle East, reinforcing a cautious yet stabilizing global economic outlook. 

FTSE 100 

The FTSE 100 is trading modestly higher by 0.46% at 8,967.20, holding firmly above a key breakout level that now serves as support. This sustained move above former resistance underscores the strength of the prevailing uptrend, further supported by its position above the 21-day and 50-day Simple Moving Averages. The RSI at 63.14 signals strong buying interest, although a short-term pause or consolidation is possible. Any pullback toward the 8,700 support zone may attract fresh buying. With favourable macroeconomic conditions and positive investor sentiment, the index appears well-positioned to continue its upward trajectory, provided there are no significant external shocks. 

FTSE 100 Technical Chart, Source - EODHD/Others