Trump’s tariffs revive U.S. manufacturing hopes but add pressure to global and UK markets:

Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.23% on 30 April 2025.  

Macro Update:  Barclays reported a stronger-than-expected 19% rise in Q1 pre-tax profit to GBP 2.7bn, driven by robust trading activity and gains in the UK lending market. Meanwhile, UK house prices fell 0.6% in April, marking the steepest monthly drop in over 18 months amid the end of property transaction discounts. GSK beat expectations and reaffirmed its 2025 outlook, stating it is well-positioned against potential U.S. pharmaceutical tariffs, with shares rising 2.4%. Aberdeen saw GBP 5.2bn in Q1 outflows following a brief period of inflows, as weak markets and redemptions weighed. In regulatory updates, the UK announced plans to bring crypto under compulsory oversight, aligning more with the U.S. approach. British equities closed higher, buoyed by bank stocks and optimism after President Trump moved to ease his proposed automotive tariffs. 

Top Market Movers: Among top gainers on FTSE 100 index, Smith & Nephew PLC (LSE: SN.) witnessed a rise of 7.23% followed by GSK PLC (LSE: GASK) which gained around 3.01%. 

Commodity Update: The U.S. dollar held steady Wednesday but faced its worst monthly performance since November 2022 amid volatile trade policies under Trump, lifting the euro, yen, and Swiss franc. The Fed is expected to delay rate cuts until labour market weakness emerges and then ease aggressively. Gold fell 0.50% to $3,318.60, silver dropped 1.17%, copper dipped 0.25%, and Brent crude slipped 0.10% on global growth and trade concerns. 

Our Stance: President Trump's renewed focus on economic nationalism and trade tariffs is drawing mixed reactions globally. While he highlights tariffs as a tool to revive U.S. manufacturing, markets are showing clear signs of strain. Investors remain cautious ahead of U.S. GDP data, which is anticipated to reveal a slowdown or contraction in Q1, partly due to front-loaded imports before tariff hikes. Equity markets remain directionless, while oil prices have plummeted to their steepest monthly decline in over three years, signaling weakened demand amid trade tensions and oversupply concerns. Meanwhile, in Europe, cooling inflation and slight economic softness have fueled expectations of further ECB easing. Overall, while Trump champions his trade stance domestically, the global economic indicators suggest that protectionist policies may be dampening market sentiment and economic momentum across key regions. 

FTSE 100 

The FTSE 100 fell 0.05% on Wednesday and is currently trading at 8,459.57, holding above a key horizontal support zone. Although a bearish candlestick pattern has formed, its position above support suggests the potential for a bullish reversal. The 14-period RSI has improved to 55.04, indicating strengthening sentiment. However, the index remains below its 50-period Simple Moving Average, reflecting ongoing downward pressure. A breakout above nearby resistance is required to confirm a short-term bullish shift, as technical indicators continue to show a mixed outlook.​ 

FTSE 100 Technical Chart, Source - EODHD/Others