Markets plunge as U.S. tariffs reignites trade war fears, wiping out trillion:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 3.73% on 04 April 2025.  

Macro Update:  BP Chair Helge plans to step down likely in 2026, as activist hedge fund Elliott pushes for change. Meanwhile, short-dated UK bond yields fell after U.S. President Trump’s sweeping import tariffs, fueling global market selloffs and raising expectations of more Bank of England rate cuts. Although Britain was spared the harshest U.S. tariffs with a 10% duty, it is seeking to secure a trade deal to mitigate risks. Domestically, the UK construction sector contracted sharply in the latest survey, with civil engineering hit hardest and business optimism falling due to weak demand and rising costs. In M&A news, Assura received a £1.5 billion bid from Primary Health Properties, higher than a previous offer but below a competing U.S. consortium bid, marking its seventh approach in weeks. 

Top Market Movers: Among top gainers on FTSE 100 index, United Utilities Group PLC (LSE: UU.) witnessed a rise of 1.77% followed by Marks & Spencer Group PLC (LSE: MKS) which gained around 0.94%. 

Commodity Update: The U.S. dollar remained under pressure against the yen, which hovered near a six-month high, as markets assessed the impact of President Donald Trump’s broad new tariffs. The dollar steadied after rebounding from six-month lows against the euro and sterling, with attention now on the U.S. payrolls report for economic insights and monetary policy direction. In commodities, gold slipped 0.21% to $3,115.20, silver dropped 1.27% to $31.56, and copper declined 0.75% to $9,288.75. Brent oil fell 0.40% to $69.84 per barrel after OPEC+ accelerated output increases, deepening losses from Trump’s trade measures. 

Our Stance: Global markets experienced a sharp meltdown triggered by U.S. President Donald Trump's sweeping new tariffs, with megacap U.S. tech firms like Apple and consumer giants Walmart and Nike leading the selloff. The move reversed earlier optimism around pro-business policies and reignited fears of a global trade war and economic recession. Wall Street suffered its steepest single-day percentage loss since June 2020, erasing $2.4 trillion in S&P 500 market value. Currency markets also reacted sharply: the euro surged, the yen strengthened as investors sought safety, while risk-sensitive currencies like the Australian and New Zealand dollars tumbled. 

FTSE 100 

The FTSE 100 is trading at 8,414.65 on Friday, down 0.71%, forming a bearish candlestick pattern during the session. The index remains below its 21-period and 50-period Simple Moving Averages, which are strong resistance levels amid persistent market uncertainty. This setup reflects cautious sentiment, with further price action needed to confirm the next directional move. A break below key horizontal support could suggest additional downside potential. The RSI at 32.38 indicates moderate bearish momentum, leaving room for further weakness. Short-term traders should monitor support levels closely as the next sessions will be pivotal. 

Data Source - EODHD/Others