Monthly Market Review - April 2025
April 2025 was a month of heightened volatility in global markets, primarily driven by the U.S. administration's announcement of sweeping tariffs. This led to a sharp sell-off in financial markets, with both equities and bonds falling sharply. However, markets rebounded later in the month after the US announced a pause for negotiations, alleviating some investor concerns. The MSCI World Islamic Index dipped 0.5% in April, bringing its year-to-date (YTD) return to -3.0%, in contrast, the Dow Jones Sukuk Index gained 0.7%, lifting its YTD return to 3.0%*. Gold prices surged to new highs, with spot prices surpassing $3,500 per ounce, before easing back in the final days of April. The U.S. Dollar Index fell sharply, weighed down by trade policy uncertainty, weakening investor confidence in U.S. assets, and rising expectations of monetary easing*.
In April 2025, the U.S. economy navigated a complex landscape marked by evolving trade policies and shifting economic indicators. Inflation eased to 2.4% year-on-year (YoY) in March, suggesting moderating price pressures, while the unemployment rate held steady at 4.2% in April, highlighting stability in the labor market*. However, real GDP unexpectedly contracted by 0.3% in the first quarter, partially due to a spike in imports triggered by tariff anticipation, widening the trade deficit. Manufacturing showed modest resilience, with the PMI rising slightly to 50.2, indicating marginal growth. Markets widely anticipate that the Federal Reserve will leave interest rates unchanged in May*.
In the UK, the Consumer Prices Index (CPI) rose by 2.6% YoY in March, down from 2.8% in February*. The S&P Global UK Manufacturing PMI was revised up to 45.4 in April from 44.9 in March, indicating a continued contraction in the manufacturing sector, albeit at a slightly slower pace*. Export orders declined significantly, attributed to reduced demand from major trading partners, including the U.S., Europe, and China.
The Eurozone's annual inflation remained stable at 2.2% in April, consistent with March figures*. The HCOB Eurozone Manufacturing PMI inched higher to 49.0 in April from 48.6 in March, marking its highest level in 32 months but still below the 50-mark separating growth from contraction*. The ECB took a proactive stance and reduced its deposit interest rate by 25 basis points to 2.25%, marking its seventh rate cut over the past year. This decision was influenced by ongoing economic challenges, including weak growth, and rising U.S. tariffs.
China's economy encountered challenges as manufacturing activity contracted, with the official Manufacturing PMI dropping to 49.0 from 50.5 in March*, as export demand was affected by heightened U.S. tariffs. In response, the Chinese government introduced the Private Sector Promotion Law to bolster domestic business confidence and support private enterprises through improved legal safeguards. Economic data for the first quarter revealed a 5.4% year-on-year GDP growth and a 1.2% quarter-on-quarter increase, surpassing expectations and reflecting robust domestic consumption and industrial output.
Looking ahead, markets are poised to remain highly reactive to geopolitical developments, trade policy shifts, and central bank actions. Investors are encouraged to maintain a diversified portfolio to manage potential volatility.
References
- Reuters. (2025, 5). US economic stall hints at a freefall to come. Retrieved from https://www.reuters.com/breakingviews/us-economic-stall-hints-freefall-come-2025-04-30/
- Times, T. (2025, 5). Trump tariffs dent overseas demand for British goods. Retrieved from https://www.thetimes.com/business-money/companies/article/trump-tariffs-dent-overseas-demand-for-british-goods-gmqvl9nrf?
- Bank, E. C. (2025, 4). Monetary policy decisions. Retrieved from https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.mp250417~42727d0735.en.html
- Reuters. (2025, 4). China adopts law to bolster private sector amid trade war. Retrieved from https://www.reuters.com/world/asia-pacific/china-adopts-law-bolster-private-sector-amid-trade-war-2025-04-30/
- Reuters. (2025, 4). China Q1 GDP growth tops expectations, but US tariff shock looms large. Retrieved from https://www.reuters.com/world/china/chinas-q1-economic-growth-likely-slow-tariffs-darkens-outlook-2025-04-15/
- Reuters. (2025, 5). Oil tumbles as OPEC+ accelerates output hikes, surplus looms. Retrieved from https://www.reuters.com/markets/commodities/oil-falls-more-than-2bbl-opec-set-accelerate-output-hikes-2025-05-04/
Risk Warning: Equity investments are not readily realisable and involve risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. Investments of this type are only for investors who understand these risks. You will only be able to invest in the company once you have met our conditions for becoming a registered member.
Please visit www.wahed.com/uk/ventures/risk for our full risk warning.
Risk Warning: As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.
Please visit www.wahed.com for our full terms and conditions
Maydan Capital Limited, trading as WahedX, is registered in England and Wales (Company No. 13451691), registered office: 87-89 Baker Street, London, W1U 6RJ, UK. Maydan Capital Ltd (FRN: 963613) is an appointed representative of Wahed Invest Ltd (FRN: 833225), an authorised and regulated firm by the Financial Conduct Authority.Wahed Invest Ltd. is registered in England and Wales (Company No. 10829012), registered office: 87-89 Baker Street, London, W1U 6RJ, UK and is authorised and regulated by the Financial Conduct Authority: FRN 833225.
Subscribe For More Islamic Finance Content
As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.
Wahed Invest LLC (Wahed) is a US Securities and Exchange Commission (SEC) registered investment advisor. Wahed Invest provides brokerage services to its clients through its brokerage partner Apex Clearing Corporation, a member of NYSE - FINRA - SIPC and regulated by the SEC and the Commodity Futures Trading Commission. Registration does not imply a certain level of skill or training. Wahed does not intend to offer or solicit anyone to buy or sell securities in jurisdictions where Wahed is not registered or a region where an investment practice like this would be contrary to the laws or regulations. Any returns generated in the past do not guarantee future returns. All securities involve some risk and may result in loss. Any performance displayed in the advertisements or graphics on this site are for illustrative performances only.
Disclaimer: Wahed Technologies Sdn Bhd ("Wahed") is a Digital Investment Manager (DIM) licensee issued by Securities Commission Malaysia (eCMSL/ A0359/2019). It is part of Wahed Inc. Wahed is authorized to conduct a fund management business that incorporates innovative technologies into automated portfolio management services offered to clients under a license issued pursuant to Schedule 2 of the Capital Markets Services Act 2007. All investments involve risks, including the possibility of losing the money you invest, and the track record does not guarantee future performance. The history of returns, expected returns, and probability projections is provided for informational and illustrative purposes, and may not reflect actual future performance. Wahed is not responsible for liability for your trading and investment decisions. It should not be assumed that the methods, techniques, or indicators presented in this product will be profitable, or will not result in losses. The previous results of any trading system published by Wahed, through the Website or otherwise, do not indicate future returns by that system, and do not indicate future returns that will be realized by you.
Wahed Invest Limited is regulated by ADGM’s Financial Services Regulatory Authority (“FSRA”) as an Islamic Financial Business with Financial Services Permission for Shari’a Compliant Regulated Activities of Managing Assets and Arranging Custody [Financial Permission No. 220065]. Our ADGM Registered No. is 000004971.
Wahed assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. Any strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information presented may not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance.
There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services and should seek advice from an independent advisor before acting on any information presented. Any links to third-party websites are provided strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites nor do we endorse the content and information contained on those sites. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the third-party websites.
