Global Markets Seek Stability Amid Tariff Turmoil and Rebound Hopes:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 2.34% on 08 April 2025.  

Macro Update:  In March, UK investors poured £1.8 billion into U.S.-focused funds, marking one of the strongest months in a decade, as they sought to capitalize on early-year market weakness just ahead of President Trump's aggressive tariff announcement, which later triggered a global sell-off. In response to the U.S. trade measures, British Prime Minister Keir Starmer emphasized efforts to secure an economic partnership with the U.S. and lower trade barriers globally. Meanwhile, companies like Gooch & Housego are seeking alternative raw material sources due to retaliatory tariffs, Shell revised its Q1 LNG output forecast citing Australian weather disruptions, and 3i Group paused the sale of pet food brand MPM amid concerns over the U.S. imposing a steep 36% tariff on Thai exports, intensifying fears of a wider trade war. 

Top Market Movers: Among top gainers on FTSE 100 index, Rolls-Royce Holdings PLC (LSE: RR.) witnessed a rise of 7.61% followed by Bae Systems PLC (LSE: BA.) which gained around 6.64%. 

Commodity Update: On Tuesday, the U.S. dollar weakened as markets reacted to growing recession fears following President Trump’s sweeping tariffs. Gold rose 1.32% to $3,012.90, silver climbed 1.57% to $30.07, and copper edged up 0.54% to $8,796.00. Brent crude ticked up 0.11% to $64.93, slightly recovering from recent lows. Oil prices had recently hit a four-year low amid concerns over waning demand, with Trump’s new tariffs on key economies set to begin Wednesday. 

Our Stance: Global markets are showing tentative signs of recovery after last week’s steep losses, with U.S. stock index futures edging higher and megacap stocks like Tesla, Amazon, Meta, and Nvidia up nearly 2% in premarket trading. European shares also rebounded from 14-month lows, although investor sentiment remains fragile amid ongoing tariff uncertainty. In response to market volatility, China is actively intervening to stabilise its markets through increased state investment and corporate share buybacks. Markets are displaying cautious optimism, hoping for diplomatic signals on tariff negotiations. However, the broader economic outlook remains clouded by uncertainty. The risk of inflation, slowing growth, and fragmented global cooperation highlights the fragile equilibrium in financial markets. Until concrete policy shifts occur, volatility is likely to persist. 

FTSE 100 

The FTSE 100 closed at 7,811.68 on Tuesday, gaining 1.42% and forming a bullish candlestick pattern. However, it remains below a key horizontal resistance level, indicating that bearish momentum persists. The index continues to trade beneath its 21-period and 50-period Simple Moving Averages, highlighting ongoing downside pressure amid market uncertainty. The RSI stands at 22.13, reflecting continued bearish sentiment. Despite the recent gain, the overall setup suggests caution, as a breakdown below critical support levels could trigger further losses. Traders are advised to monitor support zones closely for signs of either a reversal or extended weakness. 

Data Source - EODHD/Others