VT Markets “A Billionaire’s Odyssey”, a spectacular Gala Night on 22 February 2025 at Bangkok’s Siam Kempinski Hotel, celebrating a phenomenal 2024 and unveiling plans for its 10th anniversary in 2025. Anchored by the theme “Into Tomorrow,” the event will highlight the company’s commitment to innovation, global expansion, and redefining industry standards. The event brings key clients, partners, Maserati VIPs, and industry leaders together to reflect on a year of exceptional growth and to outline future opportunities in emerging markets and financial instruments. Speeches from VT Markets’ leaders and Maserati MSG Racing’s Ben Mitchell highlight the company’s commitment to innovation, sustainability, and collaboration, setting the stage for an exciting decade ahead.

Venue: Bangkok’s Siam Kempinski Hotel
Date: 22 February 2025
Time: 7PM till late | Registration will start at 6PM
Dress Code: Black Tie

Investors are turning to Chinese stocks as a safer option amid global market uncertainty. With hopes of government support through economic stimulus, confidence in China’s market is growing. This shift is driving strong buying interest, making Chinese equities an appealing choice for traders looking for stability.

China50 index surges as investors shift capital to Chinese markets

Chinese equities experienced a strong rally on Thursday, with the China50 index soaring 3.87% to close at 13,738.

This marked a significant rebound following a period of consolidation. The index opened at 13,226, trading within a narrow range before a late-session breakout drove prices higher.

The surge was fuelled by an influx of hedge fund capital, as global investors sought refuge from the volatility in US markets.

Chinese stocks outperformed other global equities, with traders increasing their exposure amid growing expectations of monetary easing and fiscal stimulus from Beijing.

The breakout above 13,700 indicates renewed bullish sentiment in China’s stock market after a prolonged phase of underperformance.

Technical indicators reinforce this momentum, with the MACD signalling strong upward movement and key moving averages pointing towards a well-established uptrend.

Hedge funds boost exposure to China as US market volatility increases

Hedge funds focused on Asia outperformed their global counterparts, with Chinese equities leading the gains.

Industry estimates suggest that hedge fund investments in Chinese stocks have nearly doubled compared to the rally in September 2024.

This capital shift was primarily driven by uncertainty in US markets, where Wall Street faced heavy selling pressure due to concerns over aggressive trade policies and economic downturn risks.

In contrast, Chinese equities benefited from improving investor sentiment, growing expectations of economic stimulus, and a steady influx of foreign capital.

The Hang Seng Index and other major Chinese benchmarks posted strong gains, reinforcing confidence in the resilience of the region’s markets.

Technical analysis

The China50 index surged by 3.87% to close at 13,738, decisively breaking above the 13,186 support level.

Price action suggests a robust bullish rally, with the MACD confirming upward momentum and short-to-medium-term moving averages (5, 10, 30) trending higher, reflecting strong buying pressure.

While the steep climb hints at an overbought condition, momentum remains intact.

If the bullish trend persists, the next key resistance zone is expected near 13,800–14,000. However, traders should remain cautious of potential retracements if profit-taking occurs.

A decline below 13,600 could indicate a temporary pullback towards the 13,400–13,300 range.

Market participants should closely monitor Chinese economic data, policy developments, and broader global risk sentiment, as these factors could influence future price movements.

With the China50 index reaching its highest levels in months, all eyes are on Beijing’s next policy steps to sustain market confidence.

For now, China remains a key destination for investors seeking stability amid global market fluctuations, with the latest breakout signalling strong potential for further upside.

Click here to open account and start trading.

10 Best UK Blue-Chip Stocks to Watch in 2025

Looking for stable, high-performing stocks in the UK? This guide explores the 10 best blue-chip stocks in 2025, covering what makes a stock “blue-chip,” why they remain popular among traders, and how to trade them effectively. Whether you’re a long-term investor or a short-term trader, these top companies offer a mix of stability, dividends, and growth potential.

What is a Blue-Chip Company?

A blue-chip company is a well-established, financially stable business with a history of consistent performance, strong earnings, and regular dividend payments. These companies are usually market leaders in their respective industries and are known for their reliability, even in times of economic uncertainty.

In the UK, blue-chip companies are typically those listed on the FTSE 100 Index, which tracks the largest 100 firms on the London Stock Exchange (LSE) based on market capitalization. These companies operate across various industries, including finance, healthcare, energy, and consumer goods, making them attractive to traders and investors seeking stability and long-term growth.

Find out the top 10 largest stock exchanges in the world by market capitalization. 

10 Best Blue-Chip Stocks in the UK

Here are some of the best blue-chip stocks in the UK, ranked based on market capitalization, industry strength, and long-term stability. Each of these companies plays a significant role in the UK economy and holds a unique competitive advantage in its respective industry.

Note: Market capitalization and other financial data are accurate as of March 2025 and may change based on market conditions.

1. AstraZeneca (AZN.L) – Pharmaceutical Leader

Market Capitalization: Approximately £180 billion

Industry: Pharmaceuticals & Biotechnology

AstraZeneca was established in 1999 after a merger between the Swedish firm Astra AB and the British company Zeneca Group. Headquartered in Cambridge, UK, it has expanded its footprint across more than 100 countries, specializing in treatments for cancer, cardiovascular diseases, and respiratory conditions. 

The company reported an 18% revenue growth in Q4 2024, with total revenue reaching $14.9 billion, driven by strong demand for oncology and rare disease treatments.

Unique Strength: AstraZeneca continues to drive advancements in biotechnology and pharmaceuticals, with a strong pipeline of innovative medicines. It was a key player in global vaccine development, further reinforcing its position as a leader in healthcare.

2. Shell (SHEL.L) – Energy Sector Giant

Market Capitalization: Approximately £154 billion

Industry: Energy (Oil, Gas, and Renewables)

Shell’s origins trace back to 1907 when Royal Dutch Petroleum and Shell Transport & Trading Company merged to form one of the largest energy firms globally. Based in London, the company operates in over 70 countries, engaging in oil and gas exploration, refining, and renewable energy initiatives. 

The company posted $6 billion in Q3 2024 profits, exceeding expectations due to strong performance in liquefied natural gas (LNG) sales, despite weaker refining margins.

Unique Strength: Shell is transitioning toward sustainable energy, investing significantly in hydrogen, wind, and solar power, positioning itself as a leader in the green energy shift.

3. HSBC Holdings (HSBA.L) – Banking Giant

Market Capitalization: Approximately £150 billion

Industry: Financial Services (Banking & Investment)

HSBC was established in 1865 in Hong Kong to finance trade between China and Europe. Today, it is one of the world’s largest banks, headquartered in London, with operations in over 60 countries. HSBC provides commercial banking, investment banking, and wealth management services, catering to a diverse global client base. 

The bank reported $134.9 billion in annual revenue, with robust earnings supported by higher interest rates and strong performance in commercial banking.

Unique Strength: HSBC’s dominance in Asia gives it a competitive edge, particularly in China and emerging markets, benefiting from cross-border trade and investment flows.

4. Unilever (ULVR.L) – Consumer Goods Giant

Market Capitalization: Approximately £115 billion

Industry: Consumer Goods (Food, Personal Care, and Home Products)

Unilever’s origins date back to 1929, resulting from the merger of the British soap manufacturer Lever Brothers and the Dutch margarine producer Margarine Unie. This strategic alliance aimed to leverage synergies between soap and margarine production, both relying on palm oil as a key ingredient. Over the decades, Unilever expanded its portfolio, acquiring numerous brands and diversifying into various consumer goods sectors. Today, Unilever operates in over 190 countries, offering products ranging from food and beverages to personal care and cleaning agents. 

Unilever reported revenues of €59.6 billion for the fiscal year ending December 31, 2023. The company’s diverse product range and global presence have contributed to its robust financial performance.

Unique Strength: The company’s strong focus on sustainability and ethical consumerism differentiates it from competitors, with major investments in eco-friendly products and supply chain efficiency.

5. Rio Tinto (RIO.L) – Mining & Natural Resources

Market Capitalization: Approximately £79 billion

Industry: Metals & Mining

Rio Tinto’s history began in 1873 when a consortium of European investors purchased the Rio Tinto mines in Spain, primarily for copper extraction. The company expanded its operations globally over the years, venturing into various minerals, including iron ore, aluminum, and diamonds. In 1962, Rio Tinto merged with the Australian company Consolidated Zinc to form the Rio Tinto – Zinc Corporation (RTZ), further diversifying its mining activities. Today, Rio Tinto operates in over 35 countries, supplying essential minerals and metals worldwide. 

In the fiscal year ending December 31, 2023, Rio Tinto reported revenues of $54.0 billion, with profits of $10.1 billion. The company’s performance was bolstered by strong demand for iron ore and aluminum, particularly from Asian markets.

Unique Strength: Rio Tinto is a pioneer in automated and AI-driven mining, which enhances operational efficiency and reduces environmental impact.

6. British American Tobacco (BATS.L) – High Dividend Yield Stock

Market Capitalization: Approximately £69 billion

Industry: Consumer Goods (Tobacco & Nicotine Alternatives)

Established in 1902, British American Tobacco (BAT) has grown into one of the world’s largest tobacco companies. Over the years, BAT expanded its global footprint through strategic acquisitions and mergers. Notably, in 2004, its U.S. subsidiary, Brown & Williamson, merged with R.J. Reynolds to form Reynolds American, solidifying BAT’s presence in the American market. In 2017, BAT acquired the remaining shares of Reynolds American for $49.4 billion, becoming the world’s largest tobacco company by sales. 

BAT reported a net loss exceeding £14 billion ($18 billion) for the fiscal year 2023, primarily due to a £33.6 billion impairment of intangible assets, reflecting the declining value of traditional cigarette brands amid shifting consumer preferences.​

Unique Strength: BAT is shifting towards reduced-risk products such as vaping, nicotine pouches, and heated tobacco products, adapting to changing consumer preferences and stricter regulations.

7. BP (BP.L) – Oil & Gas Major

Market Capitalization: Approximately £66 billion

Industry: Energy (Oil, Gas, and Renewables)

BP’s origins date back to 1909 with the founding of the Anglo-Persian Oil Company, established to exploit oil discoveries in Iran. Over the decades, BP evolved through mergers and acquisitions, including the notable merger with Amoco in 1998, becoming BP Amoco p.l.c., and later acquiring ARCO and Burmah Castrol. The company rebranded to BP p.l.c. in 2001.​ 

BP reported a significant decline in annual profits to $8.9 billion in 2024, down from nearly $14 billion in 2023. This decrease was attributed to lower oil and gas prices and challenges in the refining sector.

Unique Strength: BP’s integrated operations across the entire oil and gas value chain, from exploration to retail, provide it with a competitive advantage. The company’s strategic investments in renewable energy sources, such as wind and solar, demonstrate its commitment to transitioning towards a lower-carbon future.

8. GlaxoSmithKline (GSK.L) – Pharmaceutical Innovator

Market Capitalization: Approximately £60 billion

Industry: Pharmaceuticals & Biotechnology

GlaxoSmithKline (GSK) was formed in 2000 through the merger of Glaxo Wellcome and SmithKline Beecham, both with rich histories in pharmaceutical development. Over the years, GSK has focused on research and development in areas such as respiratory diseases, HIV, oncology, and vaccines. In 2022, GSK demerged its consumer healthcare business to form Haleon, allowing GSK to concentrate on its biopharmaceutical pursuits. 

GSK reported a 7% increase in sales, with strong performances in the HIV and cancer drug segments. The company announced a $2.5 billion share buyback and raised its long-term sales target to nearly $50 billion, reflecting confidence in its product pipeline and market position.

Unique Strength: GSK’s robust pipeline of vaccines and specialty medicines underscores its commitment to addressing global health challenges. The company’s strategic acquisitions, such as Sierra Oncology in 2022 and Bellus Health in 2023, have bolstered its position in oncology and respiratory therapeutics.

9. Diageo (DGE.L) – Beverage Powerhouse

Market Capitalization: Approximately £46 billion

Industry: Consumer Goods (Alcoholic Beverages)

Established in 1997 through the merger of Guinness Brewery and Grand Metropolitan, Diageo has grown into one of the world’s largest producers of spirits and beers. The company’s portfolio includes renowned brands such as Johnnie Walker, Smirnoff, Baileys, and Guinness. Diageo operates in over 180 countries, with significant production facilities across the globe. 

Diageo faced challenges with declining sales in certain regions and shifting consumer patterns post-COVID-19. The company’s shares have experienced volatility, and leadership is focusing on strategies to navigate these headwinds and restore growth.

Unique Strength: Diageo’s extensive brand portfolio and global distribution network provide a competitive edge in the alcoholic beverages industry. The company’s focus on premiumization and innovation has helped it adapt to changing consumer preferences.

10. Reckitt Benckiser (RKT.L) – Health & Hygiene Leader

Market Capitalization: Approximately £35 billion

Industry: Consumer Goods (Healthcare, Hygiene & Nutrition)

Reckitt Benckiser, commonly known as Reckitt, is a British multinational consumer goods company headquartered in Slough, United Kingdom. It was formed in 1999 through the merger of Reckitt & Colman plc (UK) and Benckiser NV (Netherlands), two established firms with roots dating back to the 19th century. Over the years, Reckitt has grown into a global powerhouse, operating in around 60 countries, with products available in nearly 200 countries. The company specializes in health, hygiene, and nutrition brands that are household staples worldwide. Some of its most recognized brands including Dettol, Strepsils, Nurofen, Durex, Veet and Lysol. 

Reckitt reported £14.2 billion in revenue for the 2024 fiscal year, reflecting steady growth despite market challenges. The company’s adjusted operating profit rose by 3% to £3.48 billion, supported by higher-margin health and hygiene products.

Unique Strength: Reckitt’s strength lies in its strong brand portfolio and focus on health and hygiene products, which have seen increased demand, especially during global health crises. The company’s commitment to innovation and sustainability also enhances its market position.

These best blue-chip stocks represent some of the strongest and most stable companies in the FTSE 100, each with a unique competitive advantage. Their dividend income, financial strength, and market dominance make them excellent choices for traders looking for stability and long-term opportunities.

Discover the top 10 largest UK companies by market capitalization. 

Why Do People Trade or Invest in Blue-Chip Stocks?

The UK blue-chip stocks are popular among traders due to their stability, dividends, and strong market presence, making them ideal for both long-term investing and short-term trading. Here’s why they remain a top choice in the UK stock market:

Lower Volatility & Stability

Blue-chip stocks tend to be less volatile than smaller companies, meaning they don’t experience drastic price swings. Their large market capitalization and established business models provide stability, making them a safer option, especially during economic downturns.

Dividend Income

Many blue-chip companies in the UK pay consistent dividends, providing traders with a steady source of passive income. Companies like HSBC and British American Tobacco offer attractive dividend yields, making them appealing to income-focused traders.

Long-Term Growth

Despite being large corporations, blue-chip companies continue to expand into new markets and industries. For example, AstraZeneca has grown due to advancements in biotechnology, while Unilever consistently innovates in the consumer goods sector.

Resilience in Economic Uncertainty

Blue-chip stocks are known for their ability to withstand recessions and financial crises better than smaller companies. During market downturns, companies like BP and Shell have remained industry leaders despite oil price fluctuations.

Liquidity & Diversification

Being part of the FTSE 100, blue-chip stocks are highly liquid, meaning they are easy to buy and sell without significant price changes. They also help traders diversify their portfolios, reducing exposure to risks from any single sector.

How to Trade Blue-Chip Stocks in the UK?

Trading blue-chip stocks in the UK requires a strategic approach, combining market research, risk management, and effective trading tools. Below is a step-by-step guide on how to effectively trading the best blue-chip stocks in the UK.

1. Research & Analyse the Stock Market

Understanding market trends, economic factors, and company performance is essential when trading blue-chip stocks. Interest rates, inflation, and industry developments can influence stock prices, so traders should monitor financial reports and historical performance to make informed decisions.

2. Choose a Reliable Trading Platform

A secure and well-equipped trading platform is crucial for executing trades efficiently. A good broker should provide real-time market data, competitive spreads, and strong risk management tools. VT Markets offers a seamless trading experience with access to UK blue-chip stocks.

3. Open and Fund Your Trading Account

To start trading, traders need to register with a broker, complete identity verification, and deposit funds. A well-funded account allows better portfolio diversification, reducing exposure to risks from individual stocks.

4. Utilise Technical and Fundamental Analysis

Fundamental analysis evaluates a company’s financial health, earnings reports, and market position, while technical analysis examines stock price trends and chart indicators. Combining both approaches helps traders identify profitable entry and exit points.

5. Implement Risk Management Strategies

Using stop-loss orders, diversifying investments, and managing position sizes are essential for minimizing risks. These strategies help protect capital and reduce the impact of market volatility.

6. Stay Informed & Adapt to Market Changes

Keeping up with financial news, stock indices like the FTSE 100, and industry updates ensures traders can adjust their strategies accordingly. Being informed helps navigate market shifts effectively.

Conclusion

Trading blue-chip stocks in the UK requires a strategic approach that includes thorough market research, choosing a reliable trading platform, applying both technical and fundamental analysis, and managing risks effectively. By staying informed about market trends, economic developments, and industry changes, traders can make better decisions and adapt to market conditions. With a strong trading environment and access to advanced tools, VT Markets provides traders with the resources needed to trade UK blue-chip stocks efficiently and confidently.

Trade UK Blue-Chip Stocks Today with VT Markets

VT Markets offers a seamless and efficient trading experience for those looking to trade UK blue-chip stocks. With competitive spreads, advanced trading tools, and an intuitive platform, traders can access the best blue-chip stocks in the UK while benefiting from low-cost trading and professional analysis features. Whether you are aiming to capitalize on market trends or build a diversified portfolio, VT Markets provides the tools and support needed to trade UK blue-chip stocks with confidence and efficiency.

Sign up with VT Markets now and start trading UK blue-chip stocks!

Frequently Asked Questions (FAQs)

1. What is a blue-chip company?

A blue-chip company is a well-established, financially strong business known for stability, reliability, and steady performance. These companies are often leaders in their industries and are part of major stock indices like the FTSE 100 in the UK. Examples include AstraZeneca, HSBC, and Shell.

2. Are blue-chip stocks a safe investment?

Blue-chip stocks are considered safer than smaller stocks due to their strong financial health and market position. While they tend to be more stable, they are still subject to market risks and economic downturns. Many also offer dividends, making them attractive for long-term investors.

3. Who should trade or invest in blue-chip stocks?

Blue-chip stocks are suitable for long-term investors looking for steady returns and dividends. Beginner traders benefit from their lower volatility, while active traders can take advantage of short-term price movements using CFDs.

4. What are the best times to trade UK blue-chip stocks?

The London Stock Exchange (LSE) operates from 8:00 AM to 4:30 PM UK time. The best trading times are during the opening and closing hours, when market activity and volatility are at their highest.

5. Can I trade blue-chip stocks with VT Markets?

Yes, VT Markets offers access to UK blue-chip stocks with competitive spreads, real-time market data, and advanced trading tools for both investors and short-term traders.

6. Do blue-chip stocks always pay dividends?

Many blue-chip stocks pay dividends, but not all. Some companies choose to reinvest profits into business growth instead. Investors should check dividend policies before investing.

7. Can I trade UK blue-chip stocks from outside the UK?

Yes, international traders can access UK blue-chip stocks through platforms like VT Markets, but it’s important to check local trading regulations and tax implications.

8. What is the difference between investing and trading blue-chip stocks?

Investing focuses on long-term growth, while trading seeks short-term gains. The key difference between trading and investing is that investors use fundamental analysis, while traders rely on technical analysis and leverage.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Oil prices dipped as traders weighed stronger demand prospects against concerns over trade tensions and rising supply. While fuel consumption remains solid, uncertainty surrounding tariffs and OPEC+ production is keeping the market on edge. Investors are closely monitoring geopolitical risks, production trends, and economic signals that could influence the next move in oil prices.

Oil prices slip amid rising tariff concerns and market uncertainty

Oil prices edged lower on Thursday, reversing part of the previous session’s gains as investors balanced escalating trade tensions against expectations of stronger seasonal demand.

West Texas Intermediate (WTI) crude futures settled at USD 67.53, down 0.17%, after briefly reaching USD 67.77 earlier in the session. Brent crude followed a similar pattern, dipping 0.1% to USD 70.88 per barrel.

The decline comes after a 2% rally on Wednesday, driven by unexpectedly tight US oil and fuel inventories.

The Energy Information Administration (EIA) reported a 5.7 million-barrel drop in US gasoline stockpiles—far exceeding analysts’ forecasts of a 1.9 million-barrel draw.

Meanwhile, US crude inventories rose by 1.4 million barrels, a smaller-than-expected increase that signals steady demand.

Trade tensions cloud market outlook

Despite the price dip, global economic uncertainty remains a dominant theme.

US President Donald Trump’s latest tariff threats on European Union goods, along with Canada and Mexico preparing retaliatory measures, have added to investor concerns.

Traders fear that prolonged trade disputes could slow global economic growth, potentially reducing energy demand.

Meanwhile, the market is closely monitoring OPEC+ production levels. The latest data indicates an increase of 363,000 barrels per day in February, largely due to higher output from Kazakhstan.

While OPEC has maintained its global demand growth forecast for 2025, traders remain cautious about potential supply-side pressures.

Technical analysis

Crude oil (CL-OIL) is currently trading at USD 67.53, reflecting a 0.17% decline.

The session high of USD 67.77 encountered resistance near USD 67.86, leading to consolidation.

Short-term moving averages (5, 10, 30 periods) suggest an overall uptrend, but signs of exhaustion are emerging.

The MACD remains positive, though a slight loss of momentum hints at a possible retracement.

• _{Bullish scenario: A break above USD 67.86 could pave the way for a move towards USD 68.20.}
• _{Bearish scenario: If prices decline further, key support lies at USD 67.00, with additional downside risk towards USD 66.50.}

Short-term volatility is likely to persist, with tariff developments, OPEC+ decisions, and economic data releases serving as major catalysts.

The sharp drop in US gasoline inventories indicates robust seasonal demand, which could cushion further losses.

However, any escalation in trade disputes or a rise in OPEC+ output may cap the upside potential for oil prices.

Click here to open account and start trading.

Imagine buying your favourite electronics and noticing the price has jumped by 20%. Why? Donald Trump’s tariffs on imports might be to blame.

Tariffs are taxes on imported goods, designed to protect domestic industries or address trade imbalances. But they can ripple through financial markets, affecting stock prices, currency values, and investment decisions, no matter where you live.

Understanding these impacts is crucial to navigating market volatility. This article demystifies how Trump’s tariffs influence markets to help everyday investors make informed decisions.

What are Trump’s tariffs and why do they matter?

A tariff is like a toll fee on goods coming into a country. Trump’s tariffs, for example, slapped a 25% tax on imports from Canada and Mexico, and an extra 10% on Chinese goods, with threats of up to 60% on all Chinese imports.

These measures aim to boost US manufacturing, reduce trade deficits, and tackle issues like immigration or drug trafficking. But they can spark trade wars, where countries retaliate with their own tariffs on US goods, affecting economies worldwide.

When tariffs hike up costs, companies and consumers feel the pinch, and markets react—sometimes wildly. For instance, a 25% tariff on Mexican imports could raise the price of cars made with Mexican parts, impacting consumers and businesses globally.

How tariffs affect stock markets

Tariffs directly impact companies by increasing costs for businesses relying on imported goods, squeezing profit margins.

The US imported over 8 million cars and light trucks in 2024, with more than half from Mexico or Canada.

Trump’s 25% tariffs on these imports, set for April 2, 2025, could raise car prices by USD 3,000 per vehicle, hurting automakers’ profits and stock prices.

Even domestic manufacturers like Ford, despite sourcing most steel from the US, rely on suppliers with international materials, making them vulnerable to price hikes.

Best Buy, a US electronics retailer, warned shoppers of price increases due to tariffs on Chinese goods, with shares dropping 13% in a day, affecting investors worldwide.

Certain sectors, like automotive, tech, and retail, are particularly exposed. Tariffs also create uncertainty, spooking investors across markets.

When US inflation cooled to 2.9% in February 2025, S&P 500 futures rose 0.5%. But trade war fears, sparked by 25% steel and aluminium tariffs effective March 12, 2025, sent stocks tumbling, with declines in the S&P 500 and FTSE 100.

For practical steps, check if companies in your portfolio rely on imports, especially autos. Look for tariff-related news in their quarterly reports, no matter which market you’re invested in. Staying informed can help you anticipate stock price movements and adjust your strategy.

Tariffs and currency markets: The dollar and beyond

Tariffs often strengthen the US dollar as investors expect higher inflation and interest rates. After Trump’s tariff announcements, the dollar rose on expectations of tighter monetary policy, making US exports cheaper but imports pricier.

This shift affects other currencies—if tariffs slow trade, borrowing costs may rise globally, pressuring foreign currencies. In January 2025, the euro weakened after US bond yields climbed due to tariff fears.

For forex traders and US stockholders, dollar strength is key. A stronger dollar can boost US investments but hurt exporters abroad. For instance, a European exporter may struggle as their goods become costlier in the US.

Watch central bank actions and economic data to track currency trends. Diversifying across currencies can help hedge against tariff-driven volatility.

Inflation, interest rates, and your investments

Tariffs can drive inflation, impacting consumers and investors worldwide.

In February 2025, US inflation cooled to 2.9% from 3.1%, but Trump’s 25% tariffs on steel, aluminium, and autos could raise car prices by USD 3,000, renewing inflation fears.

Higher inflation may force the Fed to delay rate cuts or hike rates, increasing borrowing costs globally. The IMF warns tariffs could shrink global GDP by 0.5% by 2026.

To protect your investments, consider bonds or defensive stocks like utilities, which tend to perform well during inflation spikes. Monitor CPI data and central bank moves to stay ahead of rate changes.

Understanding how tariffs shape inflation and interest rates can help you make smarter investment decisions.

Global trade wars and knock-on effects

Canada, Mexico, and China have hit back with tariffs on US goods, slowing global trade.

On March 13, 2025, Canada imposed 25% tariffs on USD 20.8 billion of US goods, from steel to computers.

The EU followed with tariffs on USD 28.4 billion of US products, like bourbon and motorbikes, effective April 1, 2025.

China threatens tariffs on US aircraft and agricultural products, potentially costing US farmers USD 6.7 billion annually.

These retaliatory measures escalate the trade war, complicating trade talks between major economies like the EU and China or straining relations with the US.

Trump’s planned reciprocal tariffs on April 2, 2025, and threats of 60% tariffs on Chinese goods could divert US goods to other markets, flooding them and hurting local firms. The IMF warns of a 0.5% global GDP reduction by 2026.

For investors, monitoring trade news is essential. Diversify investments across regions to hedge against trade war risks. Consider emerging markets less exposed to US tariffs, as they might offer stability.

By spreading your investments, you can reduce the impact of tariff-driven disruptions and protect your portfolio from global economic slowdowns.

Conclusion

Trump’s tariffs can shake up stock prices, currency values, and inflation, with ripple effects for investors worldwide. While tariffs create uncertainty, informed decisions can protect your portfolio, no matter where you invest. Stay updated on tariff news, diversify your investments, and focus on long-term goals.

Ready to take control of your trading journey? Open a live account with VT Markets to access global markets and stay ahead of volatility. Remember, markets often overreact initially but stabilise over time. By understanding tariffs, you can turn market volatility into opportunity, wherever you are.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Midweek trading is set to be driven by key economic data from China, the Eurozone, and the US, with investors focusing on industrial production figures, retail sales, and inflation trends. Market participants will be watching closely for any signs of slowing economic activity or shifts in central bank policy outlooks.

KEY INDICATORS

China industrial production & retail sales (February)

• _{Provides insights into post-holiday economic activity.}
• _{A slowdown could trigger concerns about weaker global demand, impacting commodities and Asian markets.}

Eurozone industrial production (January)

• _{A key measure of the region’s manufacturing strength.}
• _{Weak data may add pressure on the ECB ahead of its next rate decision.}

US 10-year Treasury auction

• _{A critical test of investor demand for US government debt.}
• _{Higher yields could signal expectations of prolonged Fed tightening, impacting equities and the USD.}

MARKET MOVERS

EUR/USD

Possible short preference
Short positions below 1.08764 with targets at 1.08545 & 1.08332 in extension.
Alternative scenario
Above 1.09228 look for further upside with 1.09421 & 1.09692 as targets.
The RSI calls for a new downleg.

Euro muted, dollar gains ground amid tariff turmoil and upcoming CPI data

• _{The euro was broadly steady on Wednesday, while the dollar recovered mildly from recent losses as traders assessed the European response to fresh tariffs from US President Donald Trump and positioned for key consumer price index data.}
• _{The euro had inched down by 0.1% against the dollar to USD 1.0911 by 10:37 AM GMT. The dollar index, which measures the greenback against a basket of its currency pairs, rose by 0.2% to 103.54.}
• _{Brussels also vowed to impose fresh tariffs on US exports from next month in response to new American levies on more than EUR 18 billion in EU exports.}
• _{The focus is now on the all-important CPI data for further cues on US inflation and interest rates. The print is due later on Wednesday and is expected to show that inflation remained sticky in February.}

European markets rally as US inflation rises less than expected, EU retaliates to Trump’s tariffs

European markets saw broad gains on Wednesday after the European Union announced retaliatory tariffs on a range of US imports.

The regional Stoxx 600 was 0.78% higher during afternoon trade, climbing down from earlier gains, with major bourses remaining in positive territory.

• _{German stocks led gains, with the DAX index up 1.4% at 2:30 p.m. in London.}
• _{US markets have been on a roller-coaster ride amid uncertainty around President Donald Trump’s tariffs. A 25% duty on steel and aluminium imports went into effect on Wednesday.}
• _{US inflation rate hits 2.8% in February, less than expected.}
• _{The consumer price index, a wide-ranging measure of costs across the US economy, ticked up a seasonally adjusted 0.2% for the month, putting the annual inflation rate at 2.8%, according to the Labour Department.}
• _{All-item CPI had increased 0.5% in January.}

Crude Oil WTI

Possible long preference
Long positions above 67.98 with targets at 68.49 & 69.15 in extension.
Alternative scenario
Below 66.88 look for further downside with 656.47 & 65.88 as targets.
The RSI calls for a new upleg.

TODAY’S NEWS HEADLINES

China to impose retaliatory tariffs on some Canadian products as trade war heats up

• _{China on Saturday announced plans to impose a 100% tariff on Canadian rapeseed oil, oil cakes, and peas, adding that a 25% levy would be placed on aquatic products and pork originating in Canada.}
• _{The measures are scheduled to come into force from March 20, according to a statement from China’s Customs Tariff Commission of the State Council.}
• _{It is the latest in a series of tariff announcements by the US, China, Canada, and Mexico in recent months.}
• _{Beijing said a 100% tariff would be imposed on Canadian rapeseed oil, oil cakes, and peas, while a 25% levy would be placed on aquatic products and pork originating in Canada.}

Dow drops 300 points, giving up earlier gain, as trade worries hit stocks once again

• _{The Dow Jones Industrial Average fell again on Wednesday as increasing tensions between the US and key trade partners continued to rattle investors.}
• _{The blue-chip index fell 354 points, or 0.9%.}
• _{The S&P 500 was trading 0.3% lower.}
• _{The Nasdaq Composite advanced 0.3%.}
• _{President Donald Trump’s steel and aluminium tariffs took effect on Wednesday, and Canada said it will impose 25% retaliatory duties on more than USD 20 billion worth of US goods.}
• _{The European Union also responded swiftly, pledging to impose counter-tariffs on EUR 26 billion (USD 28.33 billion) worth of US imports beginning in April.}

Oil up 2% on tighter US supplies but tariff concerns loom

• _{Oil prices rose 2% on Wednesday, as US government data showed tighter oil and fuel inventories than expected, though investors kept an eye on mounting fears of a US economic slowdown and the impact of tariffs on global economic growth.}
• _{Brent futures rose USD 1.33, or 1.9%, to USD 70.89 a barrel at 2:55 PM GMT.}
• _{US West Texas Intermediate crude futures gained USD 1.45, or 2.2%, to USD 67.70 a barrel.}
• _{US crude stockpiles rose by 1.4 million barrels in the latest week, less than an expected 2-million-barrel rise.}
• _{US gasoline inventories fell by 5.7 million barrels, versus expectations for a 1.9 million-barrel draw, while distillate stocks also dropped by more than expected.}

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Bitcoin is struggling to regain momentum as market uncertainty and investor caution keep selling pressure high. A key support level has been broken, raising concerns about further drops, but some traders see potential for a short-term rebound. With external factors adding to the volatility, it’s an important moment to watch the market closely and stay informed.

BTCUSD extends losses below USD 80,000 as bearish pressure persists

BTCUSD (Bitcoin) continued its downward trajectory, slipping to a session low of USD 76,585 before rebounding slightly to trade near USD 80,213.

The ongoing selling pressure has pushed Bitcoin nearly 27% below its record high of USD 109,000, which was reached in January.

Market sentiment remains cautious, largely due to uncertainty and declining confidence. The Federal Reserve’s recent hawkish stance, signalling that interest rates may stay elevated for an extended period, has further weighed on investor appetite for riskier assets like Bitcoin.

CME gap suggests potential rebound

Traders are keeping a close eye on the Chicago Mercantile Exchange (CME) gap between USD 83,000 and USD 90,000, created during recent price movements.

Historically, BTCUSD has shown a pattern of filling these gaps, suggesting the possibility of a short-term rebound.

However, persistent selling pressure continues to cast doubt on a sustained recovery.

Market sentiment weakens as key support breaks

The breach of the crucial USD 83,000 support level, which represents the average purchase price of mid-term holders, indicates deteriorating market confidence.

A failure to reclaim this level swiftly could result in further selling pressure, potentially driving prices lower.

Technical outlook: bearish momentum dominates

BTCUSD remains under selling pressure despite signs of short-term recovery.

The moving averages (MA 5, 10, 30) show a recent crossover, indicating a potential shift in momentum. However, the 30-period MA still acts as a resistance level around USD 80,450, capping upside movements.

The MACD (12,26,9) is turning positive, with the histogram moving above the zero line, suggesting mild bullish divergence. However, the recent low of USD 76,585 remains a critical support level.

A sustained move above USD 80,200 could open the door for a test of the USD 83,000 resistance, aligning with the CME gap.

On the downside, failure to hold above USD 78,000 may trigger a retest of the USD 76,500 level, increasing the likelihood of further declines.

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