This week in global markets was marked by a fast-paced sequence of events involving trade policy shifts, heightened commercial tensions, mixed economic data, and notable movements in commodities.
Monday: US Optimism, Canadian Tensions, and Gold Recovery
US stock markets started the week on a positive note, responding to expectations that Donald Trump’s newly announced tariff package might be less aggressive than initially feared. Sources close to the administration indicated the White House may spare certain countries and adopt a more targeted approach, which was taken as a sign of possible flexibility.
Meanwhile, Canada saw a major political twist: new Prime Minister Mark Carney called for snap elections on April 28. The move aims to politically legitimise the country’s response to US trade pressure, which threatens tariffs on strategic sectors including steel, aluminium, and dairy. Carney, former central bank governor, described the situation as “the gravest crisis of our lives.”
In the commodities markets, gold resumed its upward trend following a slight correction in previous days. The rise was supported by a weaker dollar and persistent geopolitical uncertainty, particularly the ongoing ceasefire negotiations in the Ukraine conflict and escalating tensions in the Middle East.
Tuesday: Brief Relief, Oil Rallies, and Pressure on Tesla
Following Monday’s rally, US futures posted slight declines as the markets took a natural breather. Trump’s comments suggested many countries could be exempt from the new tariff package, reinforcing the idea of a more negotiable stance.
Among corporate highlights, Tesla experienced a sharp drop in European sales, down more than 40% in February. The electric vehicle maker has been impacted by growing competition in the region and by Elon Musk’s political ties to far-right European figures.
On the diplomatic front, US and Ukrainian delegations met in Saudi Arabia to discuss a potential partial ceasefire in the Black Sea. Talks with Russia, which began on Monday, were described as difficult but constructive.
Oil prices continued their ascent, fuelled by sanctions on countries importing Venezuelan crude. The move could disrupt global supply and support further price increases.
Wednesday: Tariff Uncertainty, UK Inflation Eases, and Oil Inventories Fall
US futures saw mild declines again, with markets remaining cautious amid uncertainty over the scope of Trump’s tariffs. Concerns grew over potential impact on sectors such as automotive, pharmaceuticals, and semiconductors—despite promises of gradual implementation.
In the UK, consumer inflation slowed to 2.8% year-on-year in February, below forecasts. Core inflation also fell, bringing relief to monetary authorities and strengthening the case for holding interest rates steady in the short term.
In the US, attention turned to corporate earnings. Results from companies like Dollar Tree, Cintas, Paychex, and Chewy offered insights into consumer behaviour and the labour market.
Oil prices extended gains, driven by a surprise drop in US inventories. A 4.6 million barrel withdrawal from reserves—well above expectations—reinforced the short-term tight supply outlook.
Thursday: Auto Tariffs Take Shape, Major IPO, and Commodity Swings
Markets opened mixed on Thursday, with the spotlight on tariffs targeting the automotive sector. Trump confirmed that the US will impose a 25% duty on imported vehicles and trucks starting 3 April. The measure is intended to boost domestic production but could increase new vehicle prices and spark tensions with partners like Mexico, Canada, and the EU.
The announcement hit global automaker shares. Ford, GM, and Stellantis dropped in after-hours trading, while European manufacturers like Volkswagen, Mercedes-Benz, and BMW also suffered losses.
The market also closely watched the highly anticipated IPO of CoreWeave, a cloud infrastructure firm focused on AI and backed by Nvidia and OpenAI. Its debut is seen as a gauge of investor appetite for advanced tech amid capital market volatility.
Oil prices dipped slightly after reaching three-week highs. The decline was attributed to technical profit-taking, although fundamentals remained strong, with low inventories and ongoing supply concerns.
Friday: Inflation Data Anticipated, Gold Hits All-Time High
Markets closed the week with slight declines in Wall Street futures, as investors awaited the release of the PCE index—a key inflation gauge for the Federal Reserve. The monthly figure was closely watched amid concerns that the new round of tariffs could reignite inflationary pressures.
In Canada, PM Carney reiterated that the era of trade cooperation with the US was “over.” He promised “maximum impact” retaliatory measures against the Americans, signalling that the North American trade dispute may escalate further in the coming days.
Gold hit a new all-time high, surpassing $3,110 per ounce in futures trading. The rally was fuelled by reduced risk appetite, geopolitical stress, and the broader inflationary backdrop.
Oil prices dipped slightly but posted a third consecutive week of gains. Tariff threats, production cuts, and lower inventories continue to support elevated price levels.
Conclusion
This week reaffirmed the central role of political and trade decisions in shaping market behaviour. With the US taking a more assertive approach to its tariff policy, global attention is shifting to the economic and geopolitical fallout. Gold and oil remain in upward trends, while sensitive sectors like automotive and technology are navigating heightened volatility.
With a packed agenda ahead, the outlook remains complex and fast-moving—demanding close monitoring of global negotiations and economic data that shape the path of key assets.
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