Weekly Market Round-Up for 20 to 25 Apr: Markets Juggle Earnings, Fed Signals, and Trade War Updates

Global financial markets remained volatile yet resilient during the week of April 20-25, 2025, as investors digested a mix of corporate earnings, central bank commentary, and geopolitical developments. While sentiment wavered, selective opportunities emerged across equities, commodities, and currencies.

Switzerland, heavily dependent on exports, is particularly affected by a 31% U.S. tariff on its products

1. Swiss National Bank Warns of Economic Fallout from Trade Conflict

On April 25, 2025, Swiss National Bank (SNB) Chairman Martin Schlegel expressed concerns about the negative impact of escalating global trade tensions, particularly U.S. tariffs, on Switzerland’s economy. Speaking at the SNB's annual general meeting, Schlegel highlighted that high uncertainty in international trade policy, coupled with broader global instability from events like the Ukraine war and the COVID-19 pandemic, could harm economic integration and Swiss growth prospects. 

Switzerland, heavily dependent on exports, is particularly affected by a 31% U.S. tariff on its products, with growth now expected to fall below the March forecast of 1% to 1.5%, already under the long-term average of 1.8%.

2. Federal Reserve Maintains Hawkish Tone

The Fed reiterated its commitment to keeping rates higher for longer, citing persistent inflation pressures. This pushed US Treasury yields higher, strengthening the dollar and weighing on risk assets globally, particularly in emerging markets.

3. Eurozone PMI Signals Sluggish Growth

Preliminary Purchasing Managers' Index (PMI) data from the Eurozone pointed to slower-than-expected economic activity, raising hopes for potential ECB rate cuts in the second half of 2025. European equities remained flat, with investors awaiting clearer policy direction.

4. China Stimulus Hopes Lift Asian Markets

Reports suggesting that Beijing may roll out additional fiscal measures to support domestic demand boosted sentiment in Asian equities. The Hang Seng and Shanghai Composite posted modest gains, driven by consumer and infrastructure-related stocks.

5. Oil Prices Dip on Demand Concerns

After weeks of elevated prices, Brent crude fell below USD 88 per barrel amid signs of weakening global demand and a stronger dollar. Energy stocks saw minor pullbacks, while lower oil prices offered relief to transport and manufacturing sectors.

6. US-China Trade War Heats Up Again

The trade landscape grew tense as the US announced a fresh round of tariffs targeting Chinese tech and green energy sectors. This move, framed as protecting domestic industries, triggered swift condemnation from Beijing, which hinted at retaliatory measures focusing on agricultural imports and rare earth exports. Investors are bracing for prolonged friction, with global supply chains once again under scrutiny.

7. ASEAN Resilience Amid Global Uncertainty

Southeast Asian markets showed relative stability. Indonesia maintained its managed float regime for the rupiah (IDR), with Bank Indonesia intervening as needed to smooth currency fluctuations. Malaysia continued to promote flexibility in its ringgit (MYR) market, leveraging recent liberalization measures to support trade and investment flows. Both countries highlighted their commitment to FX stability amid external shocks.