Global equities lagged bonds as trade policy changes dominated headlines once again. Chinese stocks rallied, contributing to emerging markets stocks’ outperformance. Meanwhile, growth concerns weighed on US equities. The US dollar retreated 3.5%, boosting gold prices, while oil prices retreated as OPEC announced plans to reinstate some curtailed production.

• Volatility pushed higher as the United States imposed 25% tariffs against Canada and Mexico earlier in the week but later pivoted to exempting certain goods from higher levies. Increased tariffs were also imposed against China as previously planned.
• Policy uncertainty continued to weigh on US growth prospects, even as non-farm payrolls in the United States increased month-over-month. Growth equities retreated, and the Nasdaq briefly dipped into correction territory, while value strategies led. Meanwhile, the US yield curve steepened, and US bonds lagged global peers.
• Chinese equities advanced as IT stocks rallied, and the government pledged supportive measures at the annual session of the National People’s Congress. Highlights included support for banks, private consumption, and the property sector. Officials also guided to around 5% GDP growth for 2025.
• The European Central Bank lowered rates to 2.5% as expected. However, officials pointed to a less clear path for further easing due to heightened global uncertainty. Euro area stocks advanced as the EU and Germany committed to significantly higher defense spending. Germany also pledged increases to infrastructure investments, with both moves boosting GDP growth expectations.

Sources: Bloomberg Index Services Limited, MSCI Inc., and Thomson Reuters Datastream. MSCI data provided “as is” without any express or implied warranties.
Notes: This edition was prepared on March 09, 2025, and it reviews developments of the prior week. The equity data are total returns net of dividend taxes of MSCI indexes in local currency. Global natural resources equities are represented by the MSCI All Country World Commodity Producers Index. The fixed income data are total returns for Bloomberg indexes. Gold Bullion uses near-month gold futures contracts, as traded on the COMEX, to determine performance. Currency performance is based on Reuters data.