Market Analysis Summary - June 1, 2026

FTSE 100 Attempts to Find Support

The FTSE 100 index is currently trading at one-week lows, attempting to hold above its 55-day simple moving average (SMA) at 10,349. The index is also trying to overcome minor resistance at the mid-May high of 10,400. If successful, it may reach the resistance area between 10,417 and 10,494, along with the mid-April low at 10,494. However, if it slips below the 55-day SMA, the early April low at 10,329 could be tested, with further support at the May 11 low of 10,287.

Short-term outlook: Bearish while below the May 28 high at 10,499.

Medium-term outlook: Neutral with a bullish undertone while above the May 18 low at 10,113.

EUR/USD Recovery

The EUR/USD pair is in the process of recovering from its six-week low of $1.1577, with the 200-day SMA at $1.1681 in sight. If it exceeds this level and the May 29 high of $1.1685, the next target may be the May 8 low at $1.1722. Conversely, a fall below the May low of $1.1577 could bring the $1.1550 region into focus.

Short-term outlook: Bullish while above $1.1577, targeting the $1.1720 region initially.

Medium-term outlook: Neutral while below $1.1849 but above the May trough of $1.1577.

WTI Oil Price Recovery

WTI crude oil has reversed its short-term trend after hitting a six-week low of $86.35 per barrel, rising above the $90.00 mark. The early April low at $91.05 may be tested, and if surpassed on a daily closing basis, the resistance zone between $94.73 and $95.44 could be revisited. A drop below the late May low of $86.35 would target the March low at $84.37, with minor support around the early May low of $88.66.

Short-term outlook: Bearish while below the May 18 high of $105.21.

Medium-term outlook: Neutral with a bearish bias while above the April low of $78.97 but below the March peak of $119.48.

Macro Update

• Nikkei Index: The Nikkei has broken through 67,000, climbing 1.1% amid an AI-driven rally, largely due to SoftBank's €75 billion commitment to French AI infrastructure projects.
• South Korea's Kospi: The Kospi advanced 4.2% following record export figures for May and significant growth, with Samsung's stock surging around 10% after announcing new high-bandwidth memory chip shipments.
• Middle East Tensions: The US has conducted strikes on Iranian facilities, leading to retaliatory actions from Iran and increased military operations by Israel in Lebanon.
• Oil Prices: Brent crude has rebounded above $93 per barrel, while WTI has reached $90, influenced by geopolitical tensions affecting shipping routes.
• Rate Hike Expectations: US Treasury yields have risen as investors anticipate further Federal Reserve tightening, with focus shifting to the upcoming US jobs report.
• Currency Movements: The US dollar remains stable against major currencies, while gold prices have eased despite geopolitical risks.