March 2018

• Global markets remained volatile in March 2018 as trade tensions between the United States and China intensified.
• Technology stocks experienced heightened pressure due to regulatory and trade concerns.
• Central banks maintained gradual policy tightening approaches despite market volatility.
• Emerging markets were mixed as investors assessed trade-related risks.
• Oil prices stabilised following February declines.
• Political uncertainty and geopolitical tensions contributed to cautious investor sentiment.

Asia (ex. Japan)

Asian markets outside Japan were mixed during March as trade tensions between the United States and China increased uncertainty across export-oriented economies. Technology-related sectors experienced notable volatility.

Chinese markets weakened modestly as investors evaluated the potential impact of tariffs and trade restrictions, though domestic growth conditions remained stable overall.

Europe

European equities declined modestly as trade tensions and political uncertainty weighed on investor confidence. Export-oriented sectors were particularly sensitive to concerns surrounding global trade flows.

Economic indicators remained supportive, though investors became increasingly cautious regarding the potential impact of protectionist policies on growth.

United States

U.S. equities experienced continued volatility in March as the administration announced tariffs on several imported goods, increasing concerns regarding global trade disputes.

The Federal Reserve raised interest rates again while maintaining expectations for gradual tightening. Economic growth remained solid, supported by strong employment and corporate earnings.

United Kingdom

UK equities were relatively stable in March despite broader global volatility. Sterling movements and Brexit negotiations continued influencing investor sentiment.

The Bank of England maintained expectations for further gradual tightening as inflation remained elevated and labour markets stayed firm.

Japan

Japanese equities weakened during March as trade tensions and yen strength weighed on exporters. Technology and industrial sectors experienced particular pressure.

The Bank of Japan maintained accommodative policies, helping stabilise broader market conditions despite rising external uncertainty.

Emerging Markets

Emerging markets were mixed in March as trade tensions created uncertainty regarding export growth and global demand conditions.

Asian markets remained relatively resilient overall, while commodity exporters benefited from stabilising energy and metals prices.

Commodities

Commodity prices stabilised during March despite rising trade tensions. Oil prices remained supported by supply discipline and improving demand conditions.

Industrial metals experienced volatility due to concerns surrounding tariffs and Chinese demand expectations, while gold prices strengthened modestly amid geopolitical uncertainty.