Tariffs Spark Turmoil - Britain Feels the Ripple as Global Markets Reel from Escalating Trade War:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 3.08% on 09 April 2025.

Macro Update:  British 30-year government bond yields surged to 5.507%, the highest since 1998, following a spike in U.S. Treasury yields after President Trump's 104% tariffs on China. Meanwhile, a UK lawmaker proposed a bill to expedite debt restructurings for poor nations, though it lacks party backing. The UK confirmed it would not alter its Online Safety Act during U.S. trade talks. PageGroup announced £15 million in cost cuts amid a 9% Q1 earnings drop and market uncertainty. Royal Mail raised concerns over Ofcom's proposed regulatory changes increasing costs. Separately, BP halted its clean jet fuel project in Spain due to weak market demand.

Top Market Movers: Among top gainers on FTSE 100 index, JD Sports Fashion PLC (LSE: JD.) witnessed a rise of 8.39% followed by Fresnillo PLC (LSE: FRES) which gained around 1.28%.

Commodity Update: The U.S. dollar weakened against the yen and Swiss franc on Wednesday as looming 104% tariffs on China rattled global markets. President Trump, standing firm on the increase, accused Beijing of yuan manipulation. The Chinese currency hit record lows. Gold rose 0.88% to $3,016.60, silver gained 0.42%, while copper slipped 0.54%. Brent crude dropped 3.39% to $60.69 amid demand fears from the escalating U.S.-China trade war and expectations of rising global oil supply.

Our Stance: U.S. President Donald Trump's implementation of sweeping "reciprocal" tariffs, including a staggering 104% duty on Chinese goods, has unleashed severe volatility across global markets, eroding trillions in equity value and triggering a widespread flight from risk. The aggressive trade stance has shattered long-standing global trade norms, intensified recession fears, and sparked a sharp selloff in U.S. Treasuries, raising concerns over diminishing foreign investment. Oil prices slumped to their lowest since early 2021 amid demand uncertainty, while Asian equities and currencies like Indonesia’s rupiah suffered heavy losses. With China vowing to retaliate, the escalating trade war risks further destabilising already fragile global economic sentiment..

FTSE 100

The FTSE 100 was trading at 7,728.99 on Wednesday, slipping 2.29% and forming a bearish candlestick below a key resistance level—highlighting ongoing downside momentum. The index remains below both the 21- and 50-period Simple Moving Averages, suggesting persistent selling pressure amid market uncertainty. The Relative Strength Index (RSI) sits at 24.75, pointing to continued bearish sentiment. While a clear trend is yet to be confirmed, a breach of critical support levels could trigger further declines. Traders are advised to monitor these zones closely for potential short-term direction.

Data Source - EODHD/Others