Stay up to date with the latest market trends, economic shifts and key financial developments across the UK, US and Asia.
Key market events
⤴️ Stocks bounce after tariff pause – US stocks had one of their best days since 2008 after President Trump announced a 90-day delay on higher tariffs for the majority of countries.
⚠️ US-China trade war amps up – tit-for-tat escalations have continued, with China hiking up their tariffs on US goods to 125% in retaliation to the US’s tariff of 145% on Chinese exports.
❄️ US inflation cools – a plunge in fuel prices helped bring inflation down to 2.4%. Core CPI also fell to its lowest level in four years.
🏦 US House approves $5trn tax cuts – the budget bill, which also includes spending cuts of $1.5trn, now heads to the Senate for reconciliation before being signed into law.
🌱 UK GDP boost – the UK economy grew at a faster 0.5% pace than expected in February, making the strongest monthly gain since March 2024.
What this means for financial advisers and clients
Market volatility can be unsettling for investors, but it’s also a good moment to zoom out and remind ourselves of the bigger picture. While things are moving quickly now, these short-term swings tend to get washed out over time - and the long-term direction of travel remains the same.
Some of the market moves we’ve seen this week have been dramatic, echoing past big selloffs, like the Covid-19 outbreak or the global financial crisis. But this time, the trigger’s different - its policy driven. And on Wednesday evening, we saw just how quickly policy can change.
The general consensus is that tariffs are bad for the economy, but, ironically, when President Trump’s tariff campaign is all said and done, we may end up in a world with fewer barriers to trade, not more. The next 90 days following the pause of reciprocal tariffs will be packed with negotiations, which may well result in more open global trade.
With so much up in the air, staying diversified and committed to your long-term plans remains the smart course.
Chart of the week - US asset returns by holding period
Source: JP Morgan, January 2025.
Why this matters
The chart above shows the range of outcomes seen in US equities, bonds, and a 50/50 portfolio since 1950. In a week of severe swings in both directions – sometimes over the course of a few hours - it’s a good time to remind ourselves of the core principles for long-term investing.
What the chart clearly shows is how dramatically outcomes can vary over a one-year time period- and the longer the time horizon, the narrower that range becomes. It’s a powerful visual reminder that time helps smooth volatility.
The performance of the 50/50 portfolio also highlights the benefits of diversification – helping to reduce risk while still capturing returns.
History shows us that staying invested in the market and focused on the long-term can weather the short-term storms that we’ll inevitably see from time-to-time.
Market recap
FTSE slips
- UK stocks recovered after falling to their lowest level since March 2024. Pharmaceutical and mining stocks were particularly weak as the market tries to digest the implications of tariffs.
Choppy S&P
- US stocks have bounced in both directions over the week in response to the easing and escalation of tariffs, with big tech leading the rally on Wednesday.
Chinese stock rout
- Hong Kong-listed shares suffered their worst week since 2008 after the escalation in US tariffs against China.
Oil plummets
- Brent crude fell below $60 a barrel for the first time since February 2021, with fears the trade war could lead to an economic slowdown.
Gold record
- The market turmoil continues to support gold, which has soared above $3,200 an ounce for the first time.
| | Weekly Change | YtD Change |
|---|---|---|
| FTSE 100 | -1.60% | -1.97% |
| FTSE 250 | 1.09% | -9.39% |
| S&P 500 | 3.67% | -13.22% |
| NASDAQ | 4.72% | -15.57% |
| MSCI Europe ex UK | 0.21% | 1.76% |
| Hang Seng | -7.84% | 0.49% |
| Nikkei 225 | 2.93% | -8.32% |
| Brent Crude | -4.48% | -18.19% |
| Gold Spot | 4.73% | 18.62% |
| UK 10yr Gilt yield | +30bps | +18bps |
| US 10yr Treasury yield | +42bps | -15bps |
Source: FE FundInfo, goldprice.org, exchangerates.org.uk, investing.com and finance.yahoo.com. GBP returns as at close of business on Thursday 10th April 2025.
Stay tuned for next week’s market insights
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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.
