Weekly Market Review - 29-04-2025
- Anthony Walters
- Apr 29
- 4 min read
In this edition of our Weekly Market Review, global markets rebounded as U.S. trade tensions eased and central bank rhetoric shifted. From equity gains in the Nasdaq and FTSE 100 to cooling gold prices and natural gas surges, we break down what’s driving momentum. With fresh commentary on inflation, central bank caution, and ESG innovation, here’s what investors need to know this week.
Market Recap.
Markets rallied as the US president changed tact, suggesting that firing the head of the US Federal Reserve was not an ambition, amid further room for negotiating tariffs with China. The Nasdaq 100 ETF gained 4.86% with the S&P 500 ETF in tow (+3.07%). Elsewhere, the FTSE 100 ETF gained 1.71% whilst the Dow Jones Industrial Average ETF added 1.08%.
News.
President Trump withdrew threats to fire Federal Reserve Chair Jerome Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates. "I have no intention of firing him," Trump told reporters in the Oval Office on Tuesday. "I would like to see him be a little more active in terms of his idea to lower interest rates," he added.
The de-escalation drew an immediate thumbs up from Wall Street, as equity index futures jumped by nearly 2.00% on the resumption of trading on Tuesday evening.
Inflation.
Bank of England policymaker Megan Greene recently commented on the potential impact of U.S. President Donald Trump's tariffs on UK inflation. Greene suggested that these tariffs might lead to lower inflation in the UK rather than higher.
The reasoning behind this is that the UK has chosen not to impose reciprocal tariffs, which could make it a destination for cheaper goods from Asia and the European Union. This influx of cheaper goods could exert downward pressure on prices, contributing to disinflation rather than inflation.
Central Banks.
A trade war with the United States could extinguish the euro zone's fledgling recovery, and the bloc could struggle under tariffs, uncertainty and waning confidence, two European Central Bank policymakers warned on Monday.
Finnish central bank chief Olli Rehn told a financial seminar that many of the negative risks the ECB had listed in the past had materialised. "The trade war and the enormous uncertainty it brings are now holding back growth," Rehn said. "Some of the downside risks foreseen in the ECB’s March projections have already materialised, and as a result, the growth outlook has further weakened."
While neither advocated policy easing in response, Rehn said that rates could come down if inflation was set to fall below the ECB's target.
Commodities.
Natural Gas added 8.66% for the week, in a rebound after falling from a 52-week high in March. This came amid ample supply and uncertain demand due to macroeconomic headwinds. New data showed that domestic gas production in the Lower 48 states rose to 106.6 billion cubic feet per day so far in April, a record high.
Gold fell by 3.03% for the week, cooling off after an extensive run.
ESG.
United Airlines announced an investment in JetZero, a developer of a blended wing body (BWB) aircraft anticipated to improve fuel efficiency by up to 50% relative to current aircraft models.
The investment includes a conditional purchase agreement to order up to 100 airplanes, based on JetZero achieving development milestones, including flight of a full-scale demonstrator in 2027, as well as an option for an additional 100 planes.
Geopolitics.
US President Trump urged Russia on Sunday to stop its attacks in Ukraine and suggested Ukrainian President Volodymyr Zelenskiy was ready to give up Crimea as the price of a peace deal with Russia.
Speaking to reporters in New Jersey, Trump said he was disappointed that Russia has continued to attack Ukraine, and said his one-on-one meeting with Zelenskiy at the Vatican on Saturday had gone well.
Week Ahead.
US: The advance estimate for US GDP growth in Q1 2025 is expected to show annualised growth of just 0.4%, marking the slowest pace since Q2 2022 and a sharp drop from 2.4% in Q4 2024. Weaker consumer spending and a surge in imports ahead of new tariffs are largely to blame. Markets will also be closely monitoring the April jobs report, particularly for signs of impact from DOGE-related job cuts.
Europe: The Eurozone’s annual inflation rate is likely to have eased to 2% in April, down from 2.2% in March, putting it precisely at the ECB’s target level.
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 says he has ‘no intention’ of firing Fed Chair Powell, By Kevin Breuninger, CNBC, 22/04/2025
Inflation Tariffs likely to push UK inflation lower: MPC Greene, Mortgage Strategy, 22/04/2025
Central Banks Euro zone economy facing dark future, ECB policymakers warn, Reuters, By Balazs Koranyi, 28/04/2025
ESG United Airlines Invests in Ultra-Fuel Efficient Blended Wing Aircraft Developer JetZero, by Mark Segal, ESG Today, 25/04/25
Geopolitics Trump urges Russia to stop attacks, says Zelenskiy might cede Crimea, Reuters, By Steve Holland and Jarrett Renshaw, 28/04/2025
Commodities Data from Koyfin, qualitative data from Trading Economics, 24/03/2025
Week ahead Nathan Sweeney, Marlborough Group, 25/04/2025
