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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a cautious shift in global market sentiment, the FTSE 100 recorded significant gains driven by improved risk appetite. According to reports, the index jumped 148 points to reach the 10,452 level, as hopes for a peace deal outweighed negative economic indicators. Official data showed the UK economy contracted by 0.1% in April, yet markets prioritized signs of geopolitical de-escalation over immediate growth concerns.
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Sign InThis rally coincided with a notable retreat in energy costs, as Brent crude futures fell by 2% to drop below the $90 per barrel threshold, easing inflationary pressures on UK corporates. Compared to European peers, the FTSE 100 showed outperformance supported by the commodities sector, while UK BRC Retail Sales grew by 3.4% YoY in June per market data, significantly beating the 0.6% forecast.
Investors are now watching for the sustainability of this momentum near the 10,500 resistance level, especially as oil price volatility persists. Looking ahead at the economic calendar, traders are focused on the upcoming OPEC meeting and its impact on energy supplies, alongside any further commentary from Bank of England officials regarding interest rate paths following the recent GDP contraction.