Market Highlights
- Volatility hits global markets in April — Markets swung sharply as fears over President Trump’s tariff plans triggered sell-offs, followed by a late-month rally as some tariffs were paused.
- Bond markets unsettled by tariff risks — Government bonds outperformed equities, but inflation and economic worries linked to tariffs caused sharp swings in yields.
- Companies flag growing tariff uncertainty — While Q1 results largely met expectations, more companies withheld future guidance, citing concerns over escalating trade tensions.
- Geopolitical risks linger beyond tariffs — Despite dominating headlines, Trump’s tariffs weren’t the only issue, as US-led Russia-Ukraine peace talks failed to deliver a resolution.
The Big Topics
Trump’s First 100 Days: A Tariff Rollercoaster
The 29th of April marked the 100th day of President Trump’s second term — and it’s been quite a ride for investors. Markets faced a sharp surge in volatility in early April after Trump’s “Liberation Day” tariff announcement, which introduced reciprocal tariffs on major global trading partners.
This triggered sharp market falls, but later in the month, markets rebounded strongly as Trump pulled back on some of the harsher proposals, helping to reverse much of the earlier losses.
Markets Still on Edge Over Tariffs
Markets rebounded from April’s lows after President Trump paused parts of his tariff plans, but risks remain. His unexpected 2nd of April announcement sent markets tumbling, raising fears of slower growth and rising inflation as trade costs threaten businesses and consumers.
A 90-day delay on higher tariffs for countries outside of China offered brief relief, but with that pause expiring in early July, uncertainty persists.
Trump Puts Pressure on the US Fed
Alongside trade tensions, President Trump unsettled markets by publicly challenging US Federal Reserve (Fed) Chair Jerome Powell’s decision to keep interest rates higher to counter inflation risks from tariffs.
Questioning the Fed’s independence briefly weakened the US dollar and pushed bond yields higher. Although Trump later softened his tone, the episode raised concerns about investor confidence in US markets.
Investment Positioning Turns More Cautious
April’s markets were dominated by US tariff moves. While equities recovered, concerns remain that confidence and economic activity have taken a hit.
