Markets Waver Amid Mixed Signals from Washington on Fed and Tariffs:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.12% on 24 April 2025.

Macro Update:  Unilever beat Q1 sales estimates driven by price hikes and strong demand for premium products, while minimizing expected tariff impact. Meanwhile, Anglo American reported a 15% YoY drop in copper output due to weaker Chilean production and noted that divestment of its diamond unit will depend on market conditions. ASOS surpassed H1 earnings forecasts and projected further growth, though it may alter sourcing strategies amid rising tariff risks. The UK government, cautious on securing a U.S. trade deal, reiterated it would not compromise on food standards. Inchcape warned that tariff-related uncertainty could disrupt auto supply and dampen demand, sending its shares down nearly 17%. Separately, the UK pledged £300mn to bolster domestic offshore wind capacity during its energy security summit.

Top Market Movers: Among top gainers on FTSE 100 index, St James’s Place PLC (LSE: STJ) witnessed a rise of 3.69% followed by Croda International PLC (LSE: CRDA) which gained around 2.38%.

Commodity Update: The dollar paused on Thursday after rebounding sharply, as President Trump stepped back from threats to fire Fed Chair Jerome Powell and signalled a softer China tariff stance. Gold jumped 1.79% to $3,352.10, silver dipped 0.38% to $32.42 and copper edged up 0.20% to $9,398.20. Brent crude rose 0.09% to $66.18, stabilising oil after a 2% drop amid mixed signals on OPEC+ output and U.S.-Iran talks.

Our Stance: Global markets remained volatile as mixed signals from the Trump administration on tariffs and the Federal Reserve leadership left investors grappling with uncertainty. Stocks drifted while the dollar’s earlier rebound faded, reflecting waning confidence. President Trump's fluctuating stance—initially criticizing Fed Chair Powell and then retracting—added confusion, though reassurances of not firing Powell and hints of easing U.S.-China tariffs briefly lifted Wall Street indices mid-week. Meanwhile, euro zone bond yields dipped as investors fled to safe havens amid negative sentiment, with Germany’s 10-year yield falling 3 bps to 2.47%. Treasury Secretary Bessent’s remarks that the U.S. has no currency target and that current tariffs with China are “unsustainable” further shaped the cautious tone. Overall, the market’s choppy behavior underscores investor unease amid geopolitical inconsistency and policy unpredictability, reinforcing the need for stable leadership and coherent trade strategy.

FTSE 100

The FTSE 100 went down 0.12% on Thursday, trading at 8,396.21 and forming a bearish candlestick pattern. The index faced resistance around the 8,400 mark, a level that has previously impeded upward momentum. Key support is observed near 8,100, with further support around the 8,000 level. A breach below these levels could signal a deeper correction. The FTSE 100 is trading below its 200-day moving average, indicating a bearish trend. The FTSE 100 faces challenges in regaining upward momentum. A sustained move above 8,400 could shift the bias to neutral, while a decline below 8,000 may confirm a bearish trend.​

FTSE 100 Technical Chart, Source - EODHD/Others