Limit Up!

Limit Up! 27th March 2025

Written by Ian Reynolds | Mar 26, 2025 11:16:55 PM

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Overnight

Economic Indicators Released Overnight

US durable goods were stronger than expected but a lot was perceived to be consumers buying before tariffs come in .

Equities sold off as tariff day looms on April 2. Despite the rhetoric that we have to wait, Trump couldn't help himself

Trump places 25% tariff on imported autos, expecting to raise $100 billion in tax revenues [AP News]

Trump Says Reciprocal Tariff Plan on All Nations ‘Lenient’ [Bloomberg]

In the UK lower than expected CPI was good news for a Bank of England looking to stabilise rates.

 

World Equities

S&P 500 slips as tech retreats on tariff concerns [investing.com]

Breaking

Moody’s warns on deteriorating outlook for US public finances [FT]

Bitcoin

BTC trying to ignore US equities overnight. More corporate treasury plans to accumulate BTC on balance sheets. Fundamentally a great idea but borrowing to do so is not. The leverage is going to wash out at some stage.

BITCOIN / USD Daily

Commodities

Copper breaking to all time highs, along with strength in Gold, Silver and Palladium underscore their global importance and how much tariffs could cause price dislocations.

The red metal, considered a barometer for economic health, is a vital component for the construction and defence industries as well as a key component in electric cars, wind turbines and the power grid. But mining companies are having a hard time keeping up.

Traditionally a sign of economic growth, or is it repositioning in front of a polarising world?

COPPER / USD Daily

Equities

UK equities seem to be well supported and near the all time highs

FTSE Daily

Bonds

UK Gilt yields have hit that resistance line quite a few times now. With cable in a strong uptrend and the FTSE still above long term support, unlike US equity markets, the UK seems to be the market that could benefit from reallocated flows. 

 

UK 10 Year Government Bond Yield Daily

Foreign Exchange

Cable (GBP/USD). Momentary strength in USD coupled with lower than expected UK CPI numbers released overnight,  allows for buying the bottom of the downtrend channel. 

GBP / USD Daily

Economic Indicators Today