Global Markets Weekly Review: Volatility, Tariffs, and Economic Shifts Shake Investors

The past week (March 3 to March 9, 2025) was marked by significant volatility across global financial markets, influenced by escalating trade tensions, shifts in fiscal policies, and evolving economic indicators.​

United States

U.S. equity markets experienced notable fluctuations:​

• S&P 500: The index recorded its most substantial weekly loss since September 2024, declining by 3.1%. ​

• Dow Jones Industrial Average: The Dow decreased by 2.4% over the week. ​i

• Nasdaq Composite: The tech-heavy index fell by 3.5%, marking its third consecutive week of declines. ​

These downturns were primarily driven by the announcement and subsequent implementation of tariffs on imports from Canada, Mexico, and China, which heightened concerns about a potential economic slowdown.  Additionally, the U.S. economy added 151,000 jobs in February, slightly below expectations, leading to an uptick in the unemployment rate to 4.1%. ​

Europe

European markets displayed resilience amid global uncertainties:​

• Germany's DAXK: The index achieved a year-to-date gain of 15.26% as of March 3, 2025. ​

• France's CAC 40: The French benchmark showed a year-to-date increase of 10.90% by the same date. ​

Germany's announcement of a substantial fiscal stimulus package, totaling €500 billion for infrastructure and defense spending, contributed to these gains.  However, this move also triggered a global bond sell-off, with German 10-year bund yields rising sharply. ​

Asia

Asian markets had mixed performances:​

• Hong Kong's Hang Seng: The index led global gains with a year-to-date increase of 17.24% as of March 3, 2025. ​

• Japan's Nikkei 225: The index experienced fluctuations due to global trade tensions and domestic economic data.​

Fixed Income and Commodities

The bond market reacted to fiscal policy changes and economic data:​

• U.S. 10-Year Treasury Yield: The yield fluctuated, ending the week at 4.31%, up from a mid-week low of 4.11%. ​

• German Bunds: The 10-year yield surged to 2.85%, marking its highest jump in nearly 30 years, following Germany's fiscal announcements. ​

In commodities:

• Oil Prices: Brent crude rose to $70.36 per barrel, while WTI reached $67.04, driven by supply concerns amid geopolitical tensions. ​

• Gold: Prices declined to $1,914.10 per ounce, reflecting shifts in investor sentiment. ​

Cryptocurrencies

The cryptocurrency market faced downward pressure:​

• Bitcoin (BTC): Prices fell below $84,000, marking a significant decline. ​

• Ethereum (ETH): The cryptocurrency experienced a 7.56% drop, ending the week at $2,048.43.​

In summary, the past week underscored the interconnectedness of global financial markets, with policy decisions and economic data influencing investor behavior across asset classes.