No Easter surprise for equity markets as investors flock to safe haven assets
Matt Britzman, senior equity analyst, Hargreaves Lansdown: “There was no Easter surprise for European markets, opening with a cautious note this morning, taking cues from the broad risk-off sentiment spreading around the globe. In a similar fashion, the FTSE 100 has opened flat after ending last week with its sixth consecutive session in the green.
What was supposed to be a sleepy Easter Monday turned into anything but, as US markets bled red from the opening bell – light on volume but heavy on drama. With no fresh headlines to blame, the selloff seemed more like a crisis of confidence than of catalyst, as traders wrestled with a growing list of unknowns. The tariff tug-of-war still has no end in sight, and now the Powell power struggle is adding more fuel to the fire, with whispers from the White House about his potential ousting rattling already jittery investors. At this rate, even bad news might be seen as a buying signal – if only because something, anything, from Washington might offer a sliver of direction.
Markets are now itching for real progress on trade deals – posts from the President on Truth Social or X just aren’t cutting the mustard anymore. Investors want ink on paper, not just words, as a clear signal that movement is happening – and the clock is ticking.
This lack of certainty is sending investors right into the arms of traditional safe haven assets, with gold and the Japanese yen both cashing in on the drama. Gold dazzled past $3,480 per ounce, hitting a record high as fears over trade tensions and political meddling in US monetary policy sent risk appetite packing. Not to be outdone, the yen hit a seven-month high against the dollar, with investors saying yes to safety while turning their backs on shaky sentiment in US assets.
Brent crude oil clawed back to $67 per barrel in what looks like a technical rebound more than anything else, with hopes of a sustained rally running on fumes amid looming US-Iran deal talks and recession fears. With OPEC+ set to boost output and demand prospects dimmed by economic uncertainty and trade tensions, the oil market’s outlook remains decidedly slippery.”