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Weekly Market Review - 27-05-2025

  • Writer: Anthony Walters
    Anthony Walters
  • May 27
  • 3 min read

Updated: Jun 3

Markets saw a mixed performance last week, as geopolitical tensions and tariff uncertainty weighed heavily on US indices while the UK held steady. Inflation continues to dominate economic discussions, especially in the UK, where a sharper-than-expected rise is testing central bank policy. Meanwhile, key developments in ESG, commodities, and geopolitics offer fresh context for investors navigating this volatile environment.



Market Recap.


American markets sold off towards the latter part of the week while the UK held strong. The FTSE 100 ETF gained 0.19%, as the Nasdaq 100 ETF (-2.92%), S&P 500 (-3.24%) and the Dow Jones Industrial Average ETF (-3.25%) amid the thread of further trade tariffs.  

 


News.


President Donald Trump has extended the deadline for US-EU tariff negotiations to the 9th July, following a “very nice” call with European Commission President Ursula von der Leyen. Trump had initially imposed a 20% tariff on EU goods, later reduced to 10% to allow talks. Frustrated by slow progress, he threatened to raise it to 50% by the 1st June. Von der Leyen welcomed the extension, saying the EU is ready to advance talks. The EU exported over $600 billion in goods to the US last year, while importing $370 billion, highlighting the trade imbalance Trump aims to address. 



Inflation. 


UK inflation rose more sharply than expected in April, driven by a surge in energy and transport costs, pushing the headline rate well above 3% and raising fresh questions for the Bank of England. 


Consumer prices increased by 3.5% in the year to April, up from 2.6% in March, according to data released by the Office for National Statistics (ONS) on Wednesday. It marks the highest annual rate since February 2024 and sits near the top of economists’ forecasts. 



Central Banks.


The pace of UK interest rate cuts has been “too rapid” at a time when pay packet increases remain strong and could fuel a resurgence in inflation, according to the Bank of England’s chief economist, Huw Pill. He said the quarterly pace of rate cuts since mid-2024 had been too rapid and his colleagues should be cautious before making further cuts. “I remain concerned that structural changes in the price- and wage-setting behaviour have increased the intrinsic persistence of the UK inflation process,” said Pill. 



Commodities.


Silver prices climbed above $33 per ounce on Friday and were on track to rise about 3% for the week, driven by heightened demand for safe-haven assets amid growing concerns over the US fiscal outlook. Investor anxiety was stoked by the new U.S. budget bill—which includes significant tax cuts and expanded defence spending, raising fears of worsening deficits and an expanding national debt. 



ESG.


Facebook, Instagram, and WhatsApp owner Meta has signed two long-term Power Purchase Agreements (PPA) to acquire 650 MW of solar energy in Texas and Kansas from energy provider AES to support the social media giant’s data centres. 

Meta has set a target to reach net-zero emissions across its value chain by 2030. 


Geopolitics.


India's defence minister has approved a framework for building the country's most advanced stealth fighter jet, the defence ministry said on Tuesday, amid a new arms race with Pakistan, weeks after a military conflict between the neighbours. 


Militaries of nuclear-armed neighbours India and Pakistan faced off in four days of fighting this month, which saw use of fighter jets, missiles, drones and artillery by both sides before a ceasefire was announced by U.S. President Donald Trump. It was the first time both sides utilised drones at scale, and the South Asian powers are now locked in a drone arms race, according to Reuters' interviews with 15 people, including security officials, industry executives and analysts in the two countries. 



Week Ahead.


US: Markets will be watching for any escalation in tariff rhetoric from Trump, especially regarding Europe and Apple. Attention will also turn to FOMC meeting minutes and Fed official commentary for signals on policy direction. 


Europe: Preliminary inflation figures from Germany, France, Italy and Spain will be closely watched amid growing uncertainty on trade and energy costs. 



Sources. 

Anthony Walters - Head of ESG at Clever Adviser Technology Ltd (Clever) 

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 agrees to extend EU trade talks after 50% tariff threat, By Rachel Hagan, BBC News, 25/05/2025 

Inflation UK inflation rises to 3.5% in April as household bills surged, by Pedro Goncalves, Reuters/Yahoo Finance, 21/05/2025 

Central Banks Pace of UK interest rate cuts is too rapid, Bank of England chief economist says, By Phillip Inman, Guardian, 20/05/2025 

ESG Meta Buys 650 MW of Renewable Energy to Power U.S. Data Centres, by ESG Today, 22/05/25 

Geopolitics India approves stealth fighter programme amid tensions with Pakistan, By Reuters/Yahoo Finance, 27/05/2025 

Commodities Trading Economics, 23/05/25 

Week ahead Nathan Sweeney, Marlborough Group, 27/05/2025 

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