Markets Whipsawed by Tariff Turbulence as Temporary Relief Masks Deeper Trade Uncertainty:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 1.67% on 14 April 2025.  

Macro Update:  Asking prices for UK homes rose 1.3% year-on-year to a record £377,182 in early April, defying the end of a tax break, with a sharper-than-usual 1.4% monthly increase, according to Rightmove. Meanwhile, attention is on Sainsbury’s upcoming results, as investors watch whether it will follow Tesco and Asda in signalling profit pressure to allow price cuts amid intensifying grocery competition. The UK government took control of British Steel’s blast furnaces to prevent their closure by Chinese owners, aiming to avoid reliance on steel imports. A Deloitte survey revealed UK CFOs have adopted their most defensive stance since early 2020 ahead of Trump’s tariff announcements, though overall sentiment remains stronger than during recent crises. Gilt yields eased after last week’s sharp spike, while fund manager Ashmore saw $3.9 billion in outflows in Q1, driving shares near a 16-year low. 

Top Market Movers: Among top gainers on FTSE 100 index, Barclays PLC (LSE: BARC) witnessed a rise of 4.63% followed by ConvaTec Group PLC (LSE: CTEC) which gained around 4.12%. 

Commodity Update: The U.S. dollar weakened on Friday as declining confidence in the U.S. economy drove investors toward safe-haven assets like the Swiss franc, yen, euro, and gold. Gold hit a record high, rising 1.92% to $3,238.40, while silver gained 1.37% to $31.18, and copper rose 0.49% to $8,949.20. Brent crude fell 0.50% to $63.02 amid concerns over the prolonged U.S.-China trade war impacting global demand. 

Our Stance: Global financial markets remain highly volatile as President Donald Trump's abrupt tariff policy shifts continue to unsettle investors. After sparking a sharp equity selloff and a slide in the U.S. dollar with sweeping tariffs, Trump stunned markets by temporarily easing duties on dozens of countries while intensifying pressure on China, prompting a global equity rally—particularly in tech stocks. Exemptions on smartphones and computers offered relief to firms like Apple and lifted European shares, while the dollar weakened further amid waning confidence in U.S. policy consistency. Bond yields in the eurozone rebounded as fears of broad-based trade disruption eased. Overall, the market’s rebound appears reactive and temporary, as the underlying instability of U.S. trade policy continues to drive risk-off sentiment and undermine investor confidence. 

FTSE 100 

The FTSE 100 is up 1.60% on Monday, currently trading at 8,091.85, and forming a bullish candlestick pattern. Despite the gains, the index remains below a key horizontal resistance level, indicating that bearish momentum still lingers. It continues to trade beneath both the 21-period and 50-period Simple Moving Averages, signalling sustained downward pressure. The Relative Strength Index (RSI) stands at 41.52, recovering from bearish territory, which suggests a potential shift toward bullish sentiment. A breakout above resistance could open the door for a short-term rebound, making resistance levels key to watch in the near term. 

Data Source - Refinitiv