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Market Wrapped 18th April 2025

April 18, 2025

Written by Curation

In this week's addition...US markets faced another tough week, while the UK provided a rare glimmer of strength amidst global uncertainty.

Market Wrap

Weekly

S&P500: -0.03% Bitcoin: +3.5%   Gold: +3.0%

Year-to-date

S&P500: -10.51%  Bitcoin: -16.55%  Gold: +22.37%

Data accurate as at time of sending this briefing

Despite an initial market boost on Monday from Trump exempting some tech products from tariffs over the weekend, it ended up being another challenging week for US markets. The S&P 500 is now down 10% year-to-date, with the US dollar at 3-year lows. This is a direct consequence of Trump’s tariffs, with recession fears rising (a Bank of America survey highlighted elevated recession risks this week) and ongoing tech sector concerns (Nvidia warned that trade restrictions with China could cost it billions). The gold price continues to reach fresh all-time highs, now over $3,300/oz, as ongoing economic uncertainty, combined with a weak dollar, has made gold more attractive to overseas investors.

In contrast, the UK market provided a rare pocket of strength, with the FTSE 100 now nearly flat year-to-date, strongly outperforming US equities (albeit only 1% ahead of the main European stock market). Last Friday, it was revealed that the UK economy grew more than expected in February (UK GDP grew by 0.5% vs expectations of 0.1%), and this positive momentum continued with a better-than-expected March inflation print—CPI came in at 2.6% vs 2.7% expected and 2.8% in February, fuelling hopes that the Bank of England could move closer to rate cuts. Meanwhile, news that the US and UK are edging closer to a bilateral trade agreement provided an extra boost to sentiment. In a week dominated by global uncertainty, the UK’s improving economic backdrop and relative political calm provided a welcome contrast.

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