The third week of March was defined by heightened volatility across international markets. Economic uncertainty, crucial decisions by central banks and geopolitical tensions set the tone for trading sessions around the globe.
From Monday to Friday, each day brought new data and events that directly impacted major stock exchanges and global economic sentiment.
Monday
Trade tensions and recession fears lead to a weak start
The week opened with US futures indices in the red, reflecting growing concerns over a potential recession and escalating trade tensions between the United States and the European Union. US Treasury Secretary Scott Bessent stated that there were “no guarantees” the country would avoid a recession this year, a comment that added to traders’ pessimism.
In addition, Donald Trump’s threat to impose tariffs of up to 200% on European goods such as wine and spirits heightened the sense of risk. The American Chamber of Commerce to the EU warned that this tariff dispute could jeopardise the $9.5 trillion transatlantic trade relationship.
Meanwhile, in Asia, China surprised positively with its latest data. Retail sales rose by 4% between January and February, while industrial output advanced by 5.9%. The Chinese government also launched a stimulus plan to boost domestic consumption, focusing on subsidies and income growth.
In the Middle East, fresh US airstrikes on Houthi targets in Yemen pushed oil prices higher due to fears of disruption along Red Sea trade routes.
Tuesday
Stagnant eurozone GDP and rising US treasuries weigh on sentiment
Markets remained cautious on Tuesday. The eurozone delivered disappointing news, with GDP growth revised from 0.1% to 0.0% for Q4 2024 – a sign of stagnation across the bloc.
In the US, the 10-year Treasury yield rose to 4.57%, pressuring risk assets and dragging down major indices. Investors turned their attention to the upcoming Federal Reserve policy decision set for the following day.
The general sentiment reflected fears that high interest rates, coupled with additional tariffs, could further dampen growth in the world’s largest economy.
Wednesday
Fed holds rates steady but signals caution; oil retreats on partial truce
As expected, the Federal Reserve kept its benchmark interest rate unchanged at 4.25%–4.50%. However, the tone of its statement was notably cautious. Jerome Powell acknowledged a slowdown in consumer spending and warned that trade tariffs could drive inflation higher in the coming months.
US equity futures ticked up slightly, with markets attempting to anticipate the Fed’s next moves, especially given projections for rate cuts later in the year.
In Japan, the central bank maintained its base rate at 0.5%, opting to monitor global developments before making any adjustments. The country remains highly exposed to international trade and vulnerable to global economic slowdowns.
Another headline came from the oil market, as prices fell following a 30-day ceasefire agreement between Russia and the US to halt attacks on energy infrastructure in Ukraine. This provided temporary relief to global energy markets.
Thursday
Gold hits record high, major moves in US tech sector
The Fed’s message continued to resonate on Thursday. The US central bank downgraded its growth forecast for 2025 and warned that inflation may take longer to ease due to the ongoing tariff landscape.
As a result, futures for major US indices declined. Meanwhile, gold reached an all-time high, trading at $3,057 per ounce, buoyed by a weakening dollar and strong demand for safe-haven assets.
In the tech sector, Nvidia announced a multibillion-dollar plan to purchase US-made semiconductors over the next four years, totalling roughly half a trillion dollars. This aligns with similar moves by companies such as Apple, which have been reshoring parts of their supply chains back to the US.
Oil also traded higher, supported by domestic demand in the US and a rebound following the week’s earlier market corrections.
Friday
Corporate results disappoint, EU pauses trade retaliation
The week ended with further declines in US equity futures, amid continued volatility and economic uncertainty. The European Union postponed the imposition of retaliatory tariffs on American goods, opening the door to resumed trade talks with Washington.
On the corporate front, FedEx revised its earnings and revenue guidance downward for the fiscal year, citing ongoing weakness in the US industrial sector. Nike also disappointed, issuing sales forecasts well below expectations – a signal of broader challenges in global consumption.
Meanwhile, Tesla came under fire due to Elon Musk’s direct involvement in US politics. Data showed a record surge in vehicle trade-ins of the brand, amid growing international backlash against the CEO’s actions.
This week truly tested global market participants. With disappointing data, tariff tensions, and critical monetary policy decisions all in play, the environment remains one of uncertainty and caution. As geopolitical risks mount and the global economy oscillates between recovery and slowdown, the coming days promise to be equally demanding for those closely following international market trends.
Always remember that at OCC Smart Investments, you’ll find over 900 assets to diversify your portfolio just the way you want a smart strategy for navigating weeks like this, marked by sharp moves and high volatility.
Visit occ.markets, create your account, and start trading today!
