UK and global markets on edge as Trump tariff fears rattle investor sentiment:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.69% on 02 April 2025.  

Macro Update:  Incomes Data Research said on Wednesday that the median pay rise awarded by major employers dropped to 3.5% in the three months to February, the lowest reading in three years and down from 4.0% in the three months to January. SoftBank-owned chip technology provider Arm Holdings (O9Ty.F) recently approached UK-based semiconductor IP supplier Alphawave (AWE.L) with an acquisition interest to gain access to key technology needed for developing its own AI processors, according to three sources. Additionally, while retail gross inflows rose 34% to £5.1bn, outflows surged to £14.1bn due to the runoff profile and consumer response to UK budget uncertainty. 

Top Market Movers: Among top gainers on FTSE 100 index, WPP PLC (LSE: WPP) witnessed a rise of 2.11% followed by Bunzl PLC (LSE: BNZL) which gained around 1.91%. 

Commodity Update: The dollar edged higher, with other currencies staying within tight ranges as traders awaited details of U.S. President Donald Trump’s tariff plans. Trump has dubbed April 2 "Liberation Day," and reciprocal tariffs on countries imposing duties on U.S. goods will take effect immediately after his announcement, according to White House spokeswoman Karoline Leavitt. In commodities, gold rose 0.45% to $3,160.25, silver gained 0.64% to $34.52, and copper surged 0.55% to $9,736.50. Brent oil held steady at $74.47 per barrel after falling, amid concerns that new U.S. tariffs could escalate a global trade war and reduce crude demand. 

Our Stance: Global financial markets remain tense as investors await clarity on U.S. President Donald Trump’s anticipated tariff announcements, expected on April 2, dubbed “Liberation Day.” The lack of detail has fueled uncertainty, leading to mixed performances across Asian stock markets and heightened volatility in global equities. While U.S. indices like the S&P 500 and Nasdaq ended slightly higher on Tuesday, the day was marked by sharp fluctuations driven by concerns over a potential global trade war. Safe-haven assets like gold hovered near record highs, reflecting broader investor unease. Emerging Asian currencies also came under pressure as markets brace for potentially disruptive reciprocal tariffs that could dampen global growth and stoke inflation fears. 

FTSE 100 

The FTSE 100 is trading at 8,597.99, down 0.43% on Wednesday, forming a bearish candlestick pattern. The index remains below its 21-period and 50-period Simple Moving Averages (SMAs), acting as strong resistance amid market uncertainty. While this suggests cautious optimism, more price action is needed to confirm the next direction. Holding above a key horizontal support zone could signal a potential sentiment shift after recent lows. The RSI stands at 44.82, indicating moderate bearish momentum with potential for further downside. Short-term traders should closely watch key support levels, as upcoming sessions will be critical in shaping the market’s outlook. 

Data Source - Refinitiv