Global Markets Jitter as Trump’s Tariff Reversal Sparks Hope Amid Policy 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 4.15% on 10 April 2025.  

Macro Update:  Britain’s housing market cooled in March as buyer demand dropped sharply with the end of tax incentives and rising economic concerns, pushing RICS enquiries to their lowest since September 2023. The Financial Reporting Council fined EY £4.9 million for serious audit breaches related to Thomas Cook’s 2017–18 accounts before its 2019 collapse. HSBC appointed Richard Blackburn as its permanent Group Chief Risk and Compliance Officer. Ofgem denied a 480-day delay penalty exemption for the Eastern Green Link 1 project led by National Grid and SP Energy Networks. UK 30-year gilt yields retreated after spiking to their highest since 1998, following a temporary pause on US tariffs. Tesco issued a profit warning, citing fierce market competition, with projected profits falling to £2.7–£3.0bn for FY25/26 from £3.13bn, sending its shares down over 7%. 

Top Market Movers: Among top gainers on FTSE 100 index, Barclays PLC (LSE: BARC) witnessed a rise of 10.01% followed by Anglo American PLC (LSE: AAL) which gained around 8.78%. 

Commodity Update: The U.S. dollar weakened against the yen and Swiss franc Thursday as President Trump escalated the trade war with China, raising tariffs to 125% while pausing others for 90 days. Gold rose 2.00% to $3,141.60, silver gained 2.27% to $31.10, and copper surged 4.03%. Brent crude fell 1.10% to $64.79 amid weak Chinese inflation data. Oil prices cooled after previous gains, as Trump’s tariff delay eased fears of a global recession. 

Our Stance: Global markets have been gripped by volatility as President Donald Trump’s abrupt decision to pause newly imposed tariffs for 90 days sent shockwaves across equities, bonds, and currencies. While this reversal lifted global shares and temporarily eased fears of a recession, it also stirred confusion and uncertainty among investors, particularly with the U.S. simultaneously escalating tariffs on Chinese imports to 125%. Treasury yields remained elevated and investor faith in U.S. bonds as safe assets was shaken. Meanwhile, political gridlock in the U.S. House over Trump’s tax cut agenda added to the uncertainty. Despite this, Chinese and Hong Kong stocks gained on hopes of resumed U.S.-China dialogue and domestic policy support, underscoring the delicate balance between market optimism and policy unpredictability. 

FTSE 100 

The FTSE 100 is currently trading at 8,013.74, up 4.35% so far today, and forming a bullish candlestick pattern. However, the index remains below a significant horizontal resistance level, suggesting that bearish momentum hasn't fully faded. It continues to hover beneath its 21-period and 50-period Simple Moving Averages, pointing to ongoing downward pressure amid broader market uncertainty. The Relative Strength Index (RSI) stands at 38.10, signalling that bearish sentiment remains dominant despite today’s gains. Traders should stay cautious — a breakdown below key support levels could trigger further downside, while a sustained push above resistance may hint at a short-term reversal. 

Data Source - EODHD/Others