Global Markets Overview

March 2, 2025

United States

On Friday, U.S. stock markets experienced gains in a volatile trading session. The S&P 500 rose 1.59% to close at 5,954.50, the Nasdaq Composite advanced 1.63% to 18,847.28, and the Dow Jones Industrial Average increased 1.39% to 43,840.91. These movements came after a contentious meeting between President Donald Trump and Ukrainian President Volodymyr Zelensky, which initially caused market dips before a recovery later in the session. ​

Europe

European markets ended the week on a mixed note. The pan-European STOXX 600 index remained flat on Friday but secured its eighth consecutive weekly gain, reflecting investor optimism despite ongoing geopolitical tensions. ​

Asia

Asian markets faced declines amid global uncertainties. Japan's Nikkei 225 dropped 2.88% to 37,155.50, while MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.45% to 576.86. ​Investors+4Reuters+4Wikipedia+4Reuters

Emerging Markets

Emerging market stocks declined, with the MSCI Emerging Markets Index falling 2.49%. Factors contributing to this downturn include escalating trade tensions and a stronger U.S. dollar, which have led investors to reassess risks associated with these markets. ​Reuters

Commodities

• Oil: Brent crude futures settled at $73.18 per barrel, down 1.16%, while West Texas Intermediate crude closed at $69.76 per barrel, a decrease of 0.84%. These declines are attributed to concerns over potential escalations in trade tensions and Iraq's decision to resume exports from the Kurdistan region. ​

  
  

  

  
  

• Copper: Copper inventories awaiting export have surged to 102,000 tonnes, the highest since late 2021. Traders are expediting shipments to the U.S. ahead of anticipated tariffs, leading to market distortions and price disparities between the U.S. and Europe. ​

Currencies

The U.S. dollar index, measuring the greenback against six major peers, rose 0.21% to 107.59. The euro fell by as much as 0.37% to a two-week low of $1.036, before paring some of that decline to trade at $1.0366. ​Reuters+1Reuters+1

Cryptocurrencies

• Bitcoin: Bitcoin's recent surge appears to be losing momentum, with prices falling below $80,000. This decline follows a period of rapid appreciation fueled by speculative investments and increased institutional interest. ​

• Ethereum: Ethereum experienced a slight decline, trading at $2,196.59, down 0.98% from the previous close.​

Fixed Income

U.S. Treasury yields fell to new multi-month lows. The yield on benchmark 10-year notes decreased by 6 basis points to 4.227%, while the 2-year note yield dropped 8.9 basis points to 3.991%. These movements reflect investor caution amid mixed economic data and geopolitical uncertainties.

Economic Indicators

The U.S. personal consumption expenditures (PCE) price index, a key inflation measure, showed a 2.5% annual increase in January, down from 2.6% in December. This aligns with expectations and suggests that inflation pressures may be stabilizing. ​Reuters

Geopolitical Developments

President Trump's recent tariff announcements have heightened global trade tensions. The U.S. plans to implement 25% duties on imports from Canada and Mexico starting March 4, along with an additional 10% duty on Chinese goods. These measures have raised concerns about a potential trade war and its impact on global economic growth. ​

Outlook

Financial markets remain sensitive to geopolitical events, trade policies, and economic data releases. Investors are advised to monitor developments closely and consider diversifying portfolios to mitigate potential risks associated with ongoing uncertainties.​

Please note that financial markets are subject to rapid changes. It's essential to consult multiple sources and seek professional advice when making investment decisions.