Weekly Market Review - 04-08-2025
- Anthony Walters
- Aug 3
- 4 min read
Updated: Aug 5
Last week saw markets react to ongoing geopolitical uncertainty, stubborn inflation dynamics, and central bank hesitation. From renewed tariff tensions to steady interest rate decisions, global investors navigated a cautious landscape. In this week’s review, we explore key market movements, policy updates, and the latest in ESG and geopolitical developments to help you stay informed and ahead of the curve.
Market Recap.
Markets retreated last week amid ongoing tariff concerns, with several major U.S. companies increasingly voicing opposition during earnings calls.
Among equity benchmarks, the most defensive FTSE 100 ETF slipped by just 0.11%, while U.S. indices saw steeper declines: the Nasdaq 100 ETF fell 1.25%, the S&P 500 ETF dropped 1.33%, and the Dow Jones Industrial Average ETF declined by 2.03%.
News.
Donald Trump has said he will dispatch his special envoy to Moscow this week before his Friday deadline for progress to be made on ending the war in Ukraine. Trump said Steve Witkoff would visit Moscow on Wednesday or Thursday. When asked on Sunday what message Witkoff would take to Russia and what Vladimir Putin could do to avoid new sanctions, the US president answered: “Yeah, get a deal where people stop getting killed.”
Inflation.
Euro zone inflation held steady at the ECB's 2% target in July, confirming the bank's benign view on prices and strengthening the case for policymakers to keep interest rates on hold for some time after rapidly cutting borrowing costs.
The ECB has halved its key rate to 2% in the year to June and predicted that inflation would hover near its target over the medium term. This reduces the need for further action, even if the outlook was unusually uncertain given trade tensions with the U.S. and geopolitical volatility, they said.
Central Banks.
The US central bank has kept interest rates unchanged again, despite pressure from President Trump to lower borrowing costs. The decision, which was widely expected, left the Federal Reserve's key lending rate between 4.25% and 4.50%, where it has stood since December.
But in an unusual dissent, two members of the board voted against the plan, saying they preferred to cut, which is a sign that support for lower rates may be broadening.
Commodities.
Gold gained 1.98% last week, driven by rising expectations of a Federal Reserve interest rate cut as well as safe-haven demand.
Elsewhere in metals, Copper fell by over 21%, after President Donald Trump announced that new US tariffs would only apply to semi-finished products like wires and pipes, exempting key imports such as ore, cathodes, and concentrates, which make up the bulk of copper inflows. This comes amid concerns that bloated US inventories are now set to be drawn down, dampening near-term demand.
ESG.
Fusion energy company Helion announced that it has started working on the site of Orion, its first fusion power plant, aimed at providing carbon-free energy to offtaker Microsoft by 2028.
Fusion, the process of combining two atoms to release energy, is seen as a potential source of abundant, zero-carbon power. Unlike fossil fuels, fusion does not emit carbon, and unlike nuclear fission, it does not generate highly radioactive waste. Large scale fusion energy generation has been elusive, however, given the need to create extremely high temperatures and pressure.
Geopolitics.
Switzerland said on Monday it was ready to make a better offer to the United States to avoid steep tariffs that are expected to take effect this week.
The Alpine nation faces a 39-percent duty, one of the highest among the dozens of countries that will be hit by new tariffs that are due to come into force from Thursday. The Swiss Federal Council said it would "continue negotiations with the aim of reaching a trade deal", even beyond the Thursday deadline.
Week Ahead.
Across the US, UK and EU, several PMI (Purchase Manager Indices) results are published, with both Manufacturing and Services in the spotlight, with all expected to see growth.
In the UK, the focus this week is on the Bank of England interest rate decision, as the market is expecting to see a cut of 0.25% to 4.00%.
View this week's ESG in 5 for more updates here
Author.
Sources.
Market recap Data sourced from FE FundInfo & Koyfin. ETFs quoted: iShares Core FTSE 100 UCITS ETF, iShares Core S&P 500 UCITS ETF, iShares Nasdaq 100 UCITS ETF (quoted in Pounds Sterling).
News Trump envoy to visit Moscow this week before deadline for ending Ukraine war, by Shaun Walker, The Guardian, 04/08/2025
Inflation Euro zone inflation holds at ECB target, supporting case for steady rates, by Balazs Koranyi, Yahoo finance/Reuters, 01/08/2025
Central Banks Fed holds interest rates steady despite Trump pressure, By Natalie Sherman, BBC News, 30/07/2025
ESG Helion Breaks Ground on First Fusion Power Plant to Supply Energy to Microsoft, by Emanuela Hawker, ESG Today, 01/08/25
Geopolitics Swiss eye 'more attractive' offer for Trump after tariff shock, By Nathalie OLOF-ORS, Yahoo Finance/AFP, 04/08/2025
Commodities Tradingeconomics.com, 30/06/25
Week ahead Nathan Sweeney, Marlborough, 07/07/2025
