Stay up to date with the latest market trends, economic shifts and key financial developments across the UK, US and Asia.
Key market events
⛽ UK inflation slows – inflation fell to 2.6% in March- below analyst expectations- led by slowdowns in leisure costs and the price of fuel.
📈 Chinese exports surge – March data shows exports out of China rose 12.9% year-on-year as companies looked to beat the new US tariffs.
🚗 US retail sales jump – retail sales climbed 1.4% in March, driven by a jump in vehicle purchases ahead of tariffs.
📉 Nvidia shares plummet - the US government has restricted tech-giant Nvidia from selling some of its chips into China - a move that could cost the company billions.
What this means for financial advisers and clients
Weaker inflation in the UK is a welcome sign for households and adds weight to the case for the Bank of England to cut interest rates next month. However, dangers still lurk on the horizon. The full effects of US tariffs - and their impact on the UK - remains far from certain and inflation could end up being buffeted significantly in either direction. As ever, a cautious approach is advised.
Chart of the week - Magnificent 7 vs S&P 493
Source: Bloomberg, First Trust Advisors as at 31 March 2025
The chart above shows the returns of the so-called ‘Magnificent 7’ mega tech-stocks with the other 493 companies within the S&P 500 index during Q1 2025.
Why this matters
Amongst the noise around the recent tariff upheaval, one key trend that has flown under the radar: even before the latest disruption, US mega-tech companies were already under pressure. In fact, in a sharp contrast to much of 2024, these seven stocks proved a drag on the S&P 500 in Q1 this year, causing the index itself to fall. This is despite the remaining 493 stocks (as a whole) rising.
This marks a significant shift. While one quarter has done little to erase the extraordinary gains they’ve built up over the last couple of years, it could possibly point to an end to US-tech exceptionalism and perhaps a reversal in fortunes going forward. Only time will tell.
If nothing else, it highlights the benefits of diversification and the advantages of spreading risk between different sectors and countries.
Market recap
FTSE finds its footing
- The UK market made solid gains this week, pushing its large-cap index into positive territory for the year.
Trade tensions take a toll
- US equities remain under pressure, with ongoing uncertainty around President Trump’s trade and tariff policies weighing on investor sentiment. The S&P 500 is now down around 15% year-to-date, while the tech-heavy Nasdaq saw sharper losses this (shortened) week due to concerns around global supply chains, particularly those linked to China.
Europe leads the pack
- European markets extended their recent recovery and remain the strongest performing major equity market so far this year.
Oil edges up
- Oil prices edged up slightly this week but remain around $10 a barrel lower since the start of the year, reflecting concerns about global growth and the impact of the trade dispute.
Gold shines in uncertain times
- Gold continued to benefit from its safe-haven appeal, gaining further and now up over 20% year-to-date.
Bonds bounce
- Government bond prices also rose, driving yields lower, as investors looked for more defensive positions.
| | Weekly Change | YtD Change |
|---|---|---|
| FTSE 100 | 3.91% | 2.52% |
| FTSE 250 | 4.06% | -5.73% |
| S&P 500 | -3.10% | -15.02% |
| NASDAQ | -5.28% | -17.83% |
| MSCI Europe ex UK | 2.70% | 5.10% |
| Hang Seng | -0.89% | 0.03% |
| Nikkei 225 | 0.24% | -10.84% |
| Brent Crude | 0.79% | -16.64% |
| Gold Spot | 2.38% | 21.44% |
| UK 10yr Gilt yield | -14bps | +4bps |
| US 10yr Treasury yield | -20bps | -29bps |
Source: FE FundInfo, goldprice.org, exchangerates.org.uk, investing.com and finance.yahoo.com. GBP returns as at close of business on Wednesday 16th April 2025.
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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.
