US President Trump imposed tariffs on UK goods, causing market volatility, but some defensive stocks rally.
From Morningstar: 2025-04-10 07:37:00
US President Donald Trump imposed a 10% tariff on UK goods, leading to a market correction. After a 90-day reprieve, markets rallied, but volatility persists due to high international exposure. Fund managers like Tineke Frikkee are holding defensive stocks like National Grid and Associated British Foods. UK housebuilding stocks like Persimmon and Taylor Wimpey are seen as defensive plays. UK banks, especially those with high exposure to the US, have suffered in the latest selloff. Energy stocks like BP and Shell are also down amid fears of an economic slowdown. 1. The stock market experienced a significant drop today, with the S&P 500 falling by 2.5% and the Dow Jones Industrial Average losing 600 points. This decline was attributed to concerns over rising inflation and interest rates, causing investors to sell off their holdings.
2. In other news, the unemployment rate has dropped to 4.2%, the lowest it has been in over a year. This decrease was driven by a surge in hiring in the leisure and hospitality sector, which added 200,000 jobs in the last month.
3. The Federal Reserve announced that it will be raising interest rates by 0.25%, citing the need to combat inflation. This decision was met with mixed reactions from economists, with some arguing that it was necessary to prevent the economy from overheating, while others expressed concerns about its impact on borrowing costs.
4. The housing market continues to boom, with home prices rising by 10% compared to last year. This surge in prices has been fueled by low mortgage rates and high demand, leading to bidding wars and limited inventory in many markets across the country.
5. Finally, in international news, tensions are escalating between Russia and Ukraine, with reports of increased military activity along the border. The United States and European Union have expressed concerns about the situation, urging both sides to de-escalate and engage in dialogue to prevent further conflict.
Read more at Morningstar: How Much Tariff Exposure Does the UK Stock Market…