Stay up to date with the latest market trends, economic shifts and key financial developments across the UK, US and Asia.
Key market events
✨ Gold continues to dazzle
- Gold prices reached a record high of $3,500 per ounce on Tuesday. A clear sign that investors are continuing to seek safe havens amid uncertainty.
🏦 US corporate earnings shine
- We’re in the thick of the US corporate earnings season, and results so far have been encouraging. Of the S&P 500 companies that have reported, 74% have beaten expectations. Current expectations for S&P 500 earnings growth are at 8.9% year-on-year – a welcome sign of resilience.
🌍 Business confidence slump
- April’s Purchasing Managers’ Index (PMI) surveys slumped in both the US and the UK. The S&P Global survey reflected a dent in business sentiment due to President Trump’s trade and tariffs policies.
What this means for financial advisers and clients
With key economic indicators showing signs of slowing, major central banks are likely to continue cutting interest rates. Pantheon Macroeconomics (one of our research partners) reports that investors now anticipate 1% of interest rate cuts in the US this year, whilst in the UK back-to-back cuts in May and June are expected.
While strong corporate earnings are a positive, this week’s slump in PMIs in the US and the UK highlights that the broader economic picture remains uncertain. For now, a cautious approach remains the sensible path.
Chart of the week - US market breadth
Source: Capital IQ, First Trust Advisors as at 31 March 2025
The chart above shows the percentage of S&P 500 companies which outperformed the index each year – and during the first quarter of 2025.
Why this matters
In recent years, the US stock market has often been led by just a handful of big-name tech giants – the so-called ‘Magnificent 7’ (Alphabet (Google), Amazon, Apple, Meta, Microsoft, Nvidia and Tesla). Much has been written about US equity market narrowness in recent years and as seen in the chart above, in 2023 just 27% of S&P 500 index constituents outperformed the index as a whole, while the following year this figure was just 1% higher - highlighting how narrow the market has become.
But Q1 2025 brought a shift. This time, 62% of companies outperformed the index – a clear sign of broader market participation. Linking with last week’s Chart of the Week, in Q1 2025 we saw how each of these seven stocks were a drag on the S&P 500 index. Even a rise in the ‘other 493’ (as a whole) wasn't sufficient to lift the index into positive territory for the quarter.
A broader equity market is arguably a healthier market with risks concentrated in fewer pockets. Passive investors will have a better-balanced portfolio that isn't dominated by exposure to a handful of stocks. Active equity managers will have more of a level playing field on which to execute their strategies – especially those managers with well-diversified portfolios.
Market recap
US equity markets bounce back
- US equity markets rebounded this week, boosted by higher-than-expected corporate earnings, and easing concerns around President Trump’s trade and tariffs policies. This was coupled with some relief after the President said he had no plans to fire Federal Reserve Chair Jerome Powell. The tech-heavy Nasdaq index enjoyed a particularly strong rebound.
Europe leads the way
- Another strong week for European equity markets made sure that the region remains the top performing major equity market year-to-date. The UK is also holding up well, thanks largely to the performance of the dominant FTSE 100 large-cap index.
Bond yields dip, oil drifts lower
- Benchmark Sovereign bond yields fell slightly further this week. Meanwhile the oil price was once again lower, remaining down by close to $10 a barrel year-to-date given fears of an economic slowdown due to the ongoing trade war.
Gold hits record high
- Gold surged to a record high of $3,500 per ounce on Tuesday 22nd April, with the remarkable recent rally reflecting its safe haven status at a time of concerns over trade, tariffs, and US-led economic growth. The precious metal has since pulled back but remains up by over 20% year-to-date.
| | Weekly Change | YtD Change |
|---|---|---|
| FTSE 100 | 1.67% | 4.32% |
| FTSE 250 | 1.52% | -4.31% |
| S&P 500 | -3.20% | -12.04% |
| NASDAQ | 7.23% | -13.91% |
| MSCI Europe ex UK | 2.36% | 7.26% |
| Hang Seng | 1.94% | 3.76% |
| Nikkei 225 | 0.09% | -8.29% |
| Brent Crude | -2.23% | -16.59% |
| Gold Spot | 0.74% | 20.99% |
| UK 10yr Gilt yield | -9bps | +7bps |
| US 10yr Treasury yield | -3bps | -26bps |
Source: FE FundInfo, goldprice.org, exchangerates.org.uk, investing.com and finance.yahoo.com. GBP returns as at close of business on Thursday 24th April 2025.
Stay tuned for next week’s market insights
For more market updates sign up to our CPD-accredited Let's Talk Markets webinars.
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
