Market Report: Global markets retreat as Trump stirs the tariff pot
Matt Britzman, senior equity analyst, Hargreaves Lansdown: “UK markets have kicked off on a downbeat note, with the FTSE 100 0.3% lower as investors digest a mix of global trade tensions and domestic economic signals. The lower opening echoes performance in European markets, and a retreat in US and Asian stocks overnight, reflecting unease over looming US tariff policies and their potential ripple effects on global growth and inflation.
Unilever’s CEO is stepping down in a surprise twist, cutting short his tenure just as he was steering the consumer goods giant toward a leaner, more profitable future. In his place, the company’s CFO Fernando Fernandez – a seasoned Unilever veteran – is taking the helm. Markets typically flinch at abrupt leadership shifts but his deep experience, and a clear mandate to push change with urgency, signal a bold move to accelerate the final stretch of Unilever’s turnaround. With Fernandez poised to build on the groundwork already laid, this unexpected transition might be the spark that helps deliver a new version of Unilever that investors have long been waiting for.
After Friday’s brutal selloff, the S&P 500 shrugged off any hope of a rebound, while the Nasdaq chalked up its third straight day of losses, painting the town red. Over in Washington, drama stole the spotlight, with debt debates, tariff tensions with Canada and Mexico back in the spotlight, and Europe still dodging Trump’s crosshairs, for now. In tech land, whispers of Microsoft axing data centre leases and Trump’s weekend jab at Chinese tech investments sent semiconductors, software, and the Golden Dragon index into a tailspin.
Apple’s Tim Cook is cosying up to the new Trump administration with a pledge to invest $500 billion in the US over the next four years, aimed at boosting American innovation and manufacturing. It’s a sprawling plan that marks Apple’s largest-ever US commitment and a clear sign that Trump’s tariff stick is causing even the biggest names to come to the table. It’s hard to say how much incremental investment the $500 billion represents over existing plans, it’s probably in the tens of billions so not a monumental change in approach for Apple. Apple’s shift away from China has been going on for some time, but it’s a million miles from being a decoupled business. This pledge is more a band-aid, a smart move to keep Trump happy and hopefully get Apple’s products onto tariff exception lists.
Gold slipped below $2,940 per ounce this morning as investors cashed in profits after the precious metal soared to a record high yesterday, fuelled by safe haven buying amid jitters over US trade policies. Trump reaffirmed plans to slap tariffs on Canadian and Mexican imports, stoking inflationary fears. Gold’s shine remains strong in 2025, reflecting ongoing global uncertainty and strong demand from central banks and investors alike.
Brent crude oil climbed toward $75 per barrel this morning, riding a wave of gains for the second day in a row, as fresh US sanctions on Iran’s oil trade sparked fears of a tighter global supply. The latest sanctions, rolled out on Monday, hit brokers, tanker operators, and shipping firms, marking Trump’s second push to choke Iran’s crude exports. Meanwhile, traders are eyeing a potential Ukraine peace deal that could ease sanctions on Russia, possibly unleashing more of its oil.”