Key Highlights for First Quarter 2025
- Global equities declined, driven by a large sell-off in US stocks as investors digested the potential negative impact from new US import tariffs. Developed markets (DM) ex US advanced, led by European stocks, which outperformed as the region showed signs of economic improvement. Emerging markets topped DM as China surged, boosted by its IT sector and economic stimulus announcements.
- Bonds gained amid concerns that the shifting global trade landscape could dampen economic growth. Global central banks largely continued their respective policy paths, preferring a wait-and-see approach on how evolving tariff policies might impact growth and inflation.
- The US dollar declined on fears that tariff-related uncertainty could weigh on global growth.
- Gold led major real assets categories as investors sought safe haven from rising geopolitical tensions and potential inflationary effects of tariffs.