The start to 2025 has been a hectic one and March has been no different. In this most recent edition of Monthly Market Moves, the focus is on the rising influence of global policy, shifting investor sentiment, and the idea of fading US equity dominance. With trade tensions building, slowing growth, and fresh stimulus in Europe driving change, what does it all mean for markets?

Key Takeaways from March

• Tariff Tensions Return – President Trumps sweeping tariffs continue to trigger volatility across US equities and casting doubt on growth projections as Markets react sharply.
   
• Fed Holds; Inflation Persists - The Federal Reserve expectedly held interest rates, but inflation indicators remain above the Federal Reserve’s 2% target elevated. Could economic uncertainty be driven by new trade policies?
   
• UK Budget Falls Flat - Chancellor Rachel Reeves delivered a ‘non-event’ Spring Budget. Growth forecasts were halved, while inflation and unemployment are expected to rise in the second half of the year.
   
• Germany Leads European Stimulus - A historic fiscal package - €500bn for infrastructure and defence - marked a major policy shift. Has this improved growth prospects for Europe despite the drag from US tariffs?
   
• US Sentiment Sours - Consumer confidence weakened further in the US, while their inflation expectations hit 30-year highs, adding pressure to household spending and market sentiment.
   
• Global Diversification Gains Traction - Investors continue to rotate away from concentrated US positions. European and Japanese equities showed resilience, while alternatives like infrastructure and gold acted as safe havens.

Market Movers
 

• Equities: Global equities outperformed the US in March; with Japan showing stronger resilience on corporate reform and robust earnings.
• Bonds: US Treasuries proved more stable than UK Gilts amid a flight to safety.
• Gold: Surged past $3,000 per ounce, ending the month at $3,158.
• Oil: Brent crude held steady, closing at $74.74 per barrel.
   

Why is it worth reading? 

If your clients are asking:

• “How will tariffs impact inflation and market risk?”
• “Is Europe looking stronger?”
• “What is the rest of the world looking like?”

Then this March 2025 Monthly Market Moves delivers the insight you need to go back to them with well-informed thoughts and opinions.  

Read the full report now >>

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