Sabco® Investment's Monthly Market Report - April, 2025
April 2025 was marked by significant turbulence in global financial markets, driven primarily by escalating trade tensions initiated by the U.S. administration. On April 2, President Donald Trump announced sweeping tariffs on all imports, dubbed "Liberation Day," leading to a sharp sell-off in equities worldwide. The S&P 500 and Nasdaq Composite each fell over 10% in the following days, with the Dow Jones Industrial Average experiencing its steepest April decline since 1932. Within two days, U.S. markets lost more than $6.6 trillion in value.
The volatility extended to international markets, with European indices like the FTSE 100 and STOXX 600 recording significant losses. Asian markets, including Japan's Nikkei 225, also suffered substantial declines, triggering trading halts.
In response to the market turmoil, the Trump administration announced a temporary 90-day pause on certain tariffs, leading to a brief rally in equities. However, investor confidence remained fragile due to ongoing policy uncertainties.
Bond markets experienced heightened volatility, with Treasury yields fluctuating amid concerns over U.S. fiscal policy. The 10-year Treasury yield remained relatively stable, ending the month at 4.23%.
Commodities presented a mixed picture. Gold prices surged to a record high of $3,500 per ounce as investors sought safe-haven assets. Conversely, oil prices declined, with West Texas Intermediate crude falling below $60 per barrel due to fears of a global economic slowdown.
The U.S. dollar weakened significantly, reaching a three-year low against a basket of major currencies. This depreciation raised concerns about economic growth and borrowing costs.
Consumer sentiment in the U.S. plummeted, with the University of Michigan's index dropping to 52.2, the lowest since 1990. This decline was attributed to uncertainties surrounding trade policies and rising inflation expectations.
In summary, April 2025 was characterized by significant market volatility, driven by aggressive trade policies and policy uncertainties. While temporary measures provided brief relief, investor confidence remained low, and markets continued to grapple with the implications of shifting economic policies.
Notice:
This Market Intelligence report is provided by Sabco® Investment Pte Ltd for informational purposes only and does not constitute financial, legal, or investment advice. While every effort has been made to ensure the accuracy of the information, Sabco® Investment makes no warranties or representations regarding its completeness or reliability. Past performance is not indicative of future results. Readers are advised to consult a qualified financial advisor before making any investment decisions.