April 2025 Market Recap: What a Month of Tariff Turmoil Means for Global Investors

April served as a stark reminder that global markets do not solely move in response to company profits or interest rates. Political decisions can shake things up quickly.

Expats, in particular, need to pay attention. Why? Because your wealth is often spread across countries, currencies, and systems. What happens in Washington or Beijing can impact your investments, your income, and even your retirement plans.

Let's recap what actually happened in markets in April, what it means for investors who live and work abroad, and why now is the time to review your financial strategy.

Stocks Market Recap: Up, Down, and Back Again

Markets were hit hard at the start of April, but bounced back by the end. On paper, the MSCI All Country World Index only fell 2.4% in sterling terms. However, this small drop hides a much bigger story. The fall in global stocks was partly offset by the pound's 3.2% rise against the US dollar, meaning foreign investments lost some value when converted back into sterling.

US stocks had the toughest time, falling close to 4%. The UK held up better, losing less than 1%. European stocks actually rose 1.4%, proving more resilient. Meanwhile, UK government bonds gained 1.9%, helping reduce the impact of falling shares for investors holding a balanced portfolio.

Why expats should care

If you live abroad, chances are your portfolio is split across currencies and countries. A strong dollar, a weaker pound, or a sharp fall in one region can make a big difference to how your wealth performs. If your investments are heavily weighted towards one country or one sector, you are more exposed than you might think. Diversification across regions and assets is not just good practice; it is essential.

Tariffs Return, and the Markets React

It started with a big announcement from the US. On 2 April, new trade tariffs were introduced that were more severe than expected, especially targeting China. China responded with its own tariffs. Stocks quickly dropped as investors feared the return of a damaging trade war.

At first, there was little sign that the White House would change course. Then, mid-month, the US president softened the stance. Most countries were given a 90-day pause from the new tariffs. Some products were temporarily exempted. The market celebrated, and US stocks saw their biggest one-day jump in years. Even so, the average US tariff rate ended the month at around 17-18%. That is more than triple the level it was under the previous administration.

What does this mean for expats?

Tariffs are simply taxes by another name. They raise the cost of doing business, push up prices, and slow growth. If you are an expat earning or spending in dollars, or if you hold US stocks, your financial plan could be affected more than you realise. The US market is still highly valued compared to the rest of the world. If earnings drop and consumer spending weakens, that could lead to bigger problems ahead.

Central Banks Move at Different Speeds

The US Federal Reserve kept interest rates steady in April. Inflation remains a concern, and the Fed seems in no rush to cut rates. In Europe, it’s a different story. The European Central Bank and the Bank of England are expected to cut rates again, especially if demand continues to soften.

The US economy is showing mixed signals. Growth shrank slightly in the first quarter, but mainly because businesses rushed to import goods before tariffs kicked in. Employment numbers still look strong. In April, the US added 177,000 new jobs, much higher than expected, and the unemployment rate held steady at 4.2%.

Why this matters for expats

Interest rates affect more than savings accounts. They drive currency values, bond prices, and investment returns. If your income, investments, and future plans are tied to multiple countries, interest rate differences can significantly impact your financial situation. This means that understanding how to invest, right now, is more important than ever.

For example, a higher US rate might mean a stronger dollar, which affects property buying, school fees, and retirement income elsewhere. If you are living off your savings or planning for retirement in the next few years, you need to keep this in mind.

Bonds Are Doing Their Job Again

Bonds quietly delivered solid returns in April. UK and European bonds rose by 1.9%. US government bonds gained just 0.6%, held back by investor concerns over the president’s tone towards the central bank.

Why bonds matter to expats

For years, many investors ignored bonds in favour of shares. However, bonds are currently offering attractive yields. If you are planning a significant expense, university costs or buying a home abroad, bonds could provide steady returns with lower risk. When held inside tax-efficient international structures, they can also help reduce future tax bills. That’s important for expats who want to protect their capital and stay flexible.

Commodities and Currencies Tell Their Own Story

Gold rose sharply in April, gaining 5.3% in US dollar terms. Oil, on the other hand, fell by over 15%. Brent crude prices dropped to their lowest levels in four years as concerns about demand rose and OPEC increased its supply.

Why does this matter to you

Gold often rises when investors lose confidence in the US dollar or expect more turbulence ahead. Oil is a key global indicator, and falling prices suggest markets are worried about slowing growth. As an expat, these trends impact you through currency fluctuations, changes in the cost of living, and altered investment returns. If your income is in dirhams or dollars but your future spending will be in sterling or euros, currency planning should be a priority in your financial strategy.

Final Thoughts: What Smart Expats Should Do Now

April was a warning. Markets do not only move on earnings or data. Politics, trade, and central bank decisions can quickly reshape the landscape. For expats, this is a call to action. Your financial life is more complex than most. You likely have assets and liabilities in different currencies and countries. You may not be able to rely on a single tax system or pension plan.

That means you need more than a one-size-fits-all investment approach. You need a plan that connects everything: your income, your goals, and your global footprint.

You do not need to solve everything on your own

Start with a conversation. Book a discovery call with My Intelligent Investor and get clear on where you stand, what’s changing, and what you can do about it. Let’s build a strategy that turns market complexity into opportunity.

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