Market Turmoil Deepens Amid Fed Pressure and Escalating Trade War Fears:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.41% on 22 April 2025.

Macro Update:  Shell is expediting a marine survey at Venezuela’s offshore Dragon gas field ahead of a U.S.-imposed May deadline to wind down energy project licenses, with survey vessel Dona Jose II now gathering data for Shell and Trinidad’s National Gas Company. In geopolitical developments, UK Prime Minister Keir Starmer and New Zealand’s Christopher Luxon are expected to strengthen defence ties and support for Ukraine. Meanwhile, Unilever has threatened to cut its annual $5 million funding to the Ben & Jerry’s Foundation unless it agrees to an expedited audit. UK startup Wayve has expanded to Japan with a new AI-driven vehicle testing centre. Financial markets saw the FTSE 100 log its strongest weekly gain since October 2022, aided by ECB rate cuts, while City of London Investment Group reported a $170 million emerging market outflow in Q1, triggered by U.S. tariff-related uncertainty.

Top Market Movers: Among top gainers on FTSE 100 index, SAINSBURY (J) PLC (LSE: SBRY) witnessed a rise of 6.96% followed by FRESNILLO PLC (LSE: FRES) which gained around 2.84%.

Commodity Update: The dollar hovered near a three-year low Tuesday after President Trump intensified criticism of Fed Chair Jerome Powell, calling him a "major loser" and urging immediate rate cuts. Investor confidence in the U.S. economy wavered. Gold surged 1.69% to $3,483.25, silver edged up 0.18% to $32.57, and copper rose 0.51%. Brent crude gained 0.80% to $66.77 as traders covered short positions despite ongoing economic concerns.

Our Stance: Global markets reeled as U.S. President Donald Trump's renewed attacks on Federal Reserve Chair Jerome Powell triggered deep investor concern over the central bank’s independence, exacerbating existing volatility from his erratic trade policies. U.S. stocks plunged over 2%, with the tech-heavy Nasdaq hit hardest due to losses in the "Magnificent Seven" megacap stocks. Eurozone bond yields steadied, but investor sentiment remains fragile as escalating tariff concerns threaten global economic stability. Opinion: The combination of political interference in monetary policy and intensifying trade tensions is rapidly eroding market confidence, pushing investors toward defensive assets and creating a volatile environment for global equities.

FTSE 100

The FTSE 100 experienced a modest gain of 0.06% on Tuesday, trades at 8,280.59 and forming a bullish candlestick pattern. Despite this increase, the index remains below a critical horizontal resistance level, indicating that bearish momentum is still present. Additionally, it is trading below both the 21-period and 50-period Simple Moving Averages, which highlights ongoing downward pressure. However, the Relative Strength Index (RSI) has improved to 48.14, showing signs of recovery from bearish territory and suggesting a potential shift toward bullish sentiment. A breakout above the resistance zone could trigger a short-term rebound, making this a key level to monitor.