Market Analysis Summary - June 8, 2026

FTSE 100 Performance

The FTSE 100 index is attempting to recover from a low of 10,291 reached on Friday, with a target to rise towards the previous week's high of 10,415. If the index surpasses this level, it may revisit the 10,500 region. However, if it fails to break above 10,415, sideways trading is expected. A drop below 10,291 could lead to a retest of last week's low at 10,237, and potentially the late April to May lows between 10,171 and 10,113.

Short-term outlook: Neutral with a slightly bearish bias below 10,415.

Medium-term outlook: Neutral with a bullish undertone above 10,113.

EUR/USD Analysis

The EUR/USD currency pair has fallen through its May low of $1.1577, moving towards the early April low of $1.1506. If this level does not hold, the next support is at the March low of $1.1485. Resistance for any potential recovery is seen in the $1.1577 to $1.1595 range. A bullish reversal would require a rise above the June 4 high of $1.1645.

Short-term outlook: Bearish while below $1.1645.

Medium-term outlook: Bearish while below $1.1645, with focus on the $1.1485 to $1.1411 zone.

WTI Crude Oil Trends

WTI crude oil has been trading sideways recently but is showing signs of moving back towards last week's high of $97.00 per barrel. If it closes above $97.23, the psychological $100 mark may be revisited. Conversely, if it fails to maintain this level, a decline towards the late May low of $86.35 could occur.

Short-term outlook: Bullish while above the June 5 low of $89.68.

Medium-term outlook: Neutral with a bearish bias below the mid-May peak of $105.21 but above the April low of $78.97.

Macro Update

Asian technology stocks have experienced significant declines, with South Korea's KOSPI dropping as much as 8.8%, triggering circuit breakers. Japan's Nikkei fell by 4.6%, and Taiwan's benchmark declined by 3.9% as investors unwound positions in semiconductor and AI-related shares. A disappointing forecast from Broadcom, coupled with stronger-than-expected US non-farm payrolls data, has raised concerns about potential Federal Reserve policy tightening, further impacting technology stocks.

Market expectations for a December interest rate hike have surged to over 70%, up from 45% a week prior, leading to a rise in two-year Treasury yields. The US dollar has reached a two-month high against major currencies, while Brent crude oil prices have surged due to geopolitical tensions in the Middle East.

Investors are advised to monitor upcoming inflation data and central bank meetings, particularly the US CPI report and monetary policy decisions from the Bank of Canada and the European Central Bank, for insights into the global interest rate outlook.