📊 Market Snapshot:

Mixed Signals Amid Global Developments

Economic and geopolitical crosswinds defined yesterday’s session, as markets tried to navigate fresh data and ongoing political tension.

UK Services & Manufacturing Slip Both sectors showed contraction, signalling slowing domestic demand. 👉 Could this suggest a cooling economy? What might it mean for future interest rate decisions or business outlooks?

🇨🇳 China Bracing for More Tariffs Reports suggest a new wave of tariffs could be implemented within 2–3 weeks. 👉 Are you exposed to China in your supply chain or investments? How might this impact your pricing or margins?

📈 Risk Assets Rebound Markets gained as investors grew more hopeful over easing tariff threats and signs of continued Fed independence. 👉 Is now a good time to reassess your risk exposure or asset allocation?

⚠️ US-Ukraine Tensions Flare The situation between Trump and Zelenskiy escalated regarding a proposed peace plan with Russia, adding geopolitical uncertainty. 👉 Could rising tensions in Eastern Europe influence market sentiment or global energy prices?

🌍 Surprise in Global PMI Figures Despite new tariffs taking effect during Liberation Day, global PMI data came in stronger than forecast. 👉 Does this point to underlying resilience in global demand—or is it a temporary lift?

Market Recap:

Diverging Economic Signals Shift Market Mood

Yesterday’s market moves were shaped by a mix of weaker data in Europe and the UK, stronger numbers from the US, and evolving trade headlines.

UK PMI figures disappointed, with both the services and manufacturing sectors slipping into contraction in April—raising fresh concerns about domestic economic momentum. Meanwhile, the eurozone services sector also dipped into negative territory, reinforcing the narrative of a broader slowdown in the region.

In contrast, US manufacturing surprised to the upside, expanding again and supporting the US dollar. The greenback got an additional lift on reports that the US may reduce some tariffs on Chinese imports—a move that would be seen as easing trade tensions.

Stocks initially rallied on the back of these developments but later pared gains after Donald Trump denied claims reported by the Financial Times about potential changes to auto part tariffs.

The White House confirmed that new tariffs on China could be introduced within 2–3 weeks, with the next round of US-Japan trade talks set for 1st May. In FX markets, EUR saw renewed selling pressure, particularly against the USD, helping push GBPEUR slightly higher.

📊 Today’s Market Snapshot:

Trade Tensions, Tariff Talk & Economic Resilience

It’s a relatively light day for economic data, with German IFO numbers the only highlight at 9am. A soft reading—particularly in services—could dent euro sentiment further.

Meanwhile, recent USD strength has been tempered slightly after China’s Commerce Ministry pushed back, confirming no talks are currently underway with the US and demanding the rollback of all unilateral tariffs. This has added fresh uncertainty to markets already wary of trade war headlines.

What’s Moving the Markets?

• 🟢 Risk assets bounced yesterday The rebound was driven by market-friendly rhetoric from Trump—confirming he won’t fire Fed Chair Jerome Powell and hinting at lower tariffs on China soon. Reports also suggest exemptions could be made for car parts, easing auto-sector worries.
• 💹 Markets reacted positively S&P 500: +1.7% Bloomberg Dollar Index: +0.8% Mixed performance in Asian equities Despite softer trade talk, the Chinese yuan (CNH) weakened 0.2% against USD overnight.
• ⚠️ US–Ukraine tensions climb Trump publicly pressured Zelenskiy over peace terms with Russia, criticising Ukraine’s stance on Crimea. This escalation clouds hopes of a swift conflict resolution, following recent reports suggesting Putin may freeze the conflict at current lines.
• 📈 PMI data defies expectations Global PMIs surprised to the upside across the US, Europe, Japan, and Australia, suggesting businesses may be adapting better than expected to tariff-related disruptions.

24th April 2025

Get in Touch!

Our team are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer guidance on the best options available to you.

P: 07441 910 897

E: FX-Admin@frank-exchange.com

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.