Global Markets Rose Amidst Trade Tensions and Tariffs Threat

Global stock markets saw an upward movement over the past week, despite lingering concerns about trade tensions and tariffs that have dampened investor sentiment. In this blog, we’ll know in detail what happened last week (March 24, 2025 to March 28, 2025) all across the globe.

US Revised the GDP Forecast

In the U.S., the Bureau of Economic Analysis revised the fourth-quarter GDP growth to an annualized 2.4%, up from the previous estimate of 2.3%. This marks a slowdown from the 3.1% growth rate in the third quarter.

Meanwhile, the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index excluding food and energy, was revised down to 2.6%.

European Stock Market Jumps

In Europe, stock markets recently benefited from a global relief rally fueled by optimism surrounding the U.S. President Donald Trump’s potentially more flexible approach to tariffs.

However, uncertainty still looms as the April 2 deadline for tariff decisions approaches. The European industrial sector has gained 16% over the past three months, making it the second-best performer, with defense stocks leading the way as the EU plans to increase defense spending.

Germany’s historical debt reform is expected to unlock hundreds of billions of euros for investments in defense and infrastructure. Industrial stocks, especially those in aerospace, defense, and major energy companies, are poised to benefit the most from the anticipated fiscal spending.

Japan Core Inflation Rises

In Japan, core consumer inflation in Tokyo remained above the central bank’s target and accelerated in March. The Tokyo consumer price index (CPI), excluding volatile fresh food costs, rose 2.4% year-over-year in March, surpassing market expectations of a 2.2% increase.

This marked acceleration from February’s 2.2% rise. A separate index, excluding both fresh food and fuel costs, also rose 2.2% in March, up from a 1.9% gain in February.

FII Turn Net Buyers in India

Back at home, domestic markets experienced some volatility due to global economic cues, domestic factors, and concerns around potential policy changes. However, in the second half of the week, the market moved higher amid reports of positive talks between Indian and US officials about a trade deal.

Foreign institutional investors (Flls) have emerged as net buyers of Indian equities for the first time in March, after two months of outflows following sustained selling, supported by expectations of an RBI rate cut next month, valuation comfort, and the US Fed’s latest view on the dot plot for 2025.

Conclusion

Recent liquidity measures by the RBI, attractive valuations following a market correction, and relative underperformance in US and Chinese equities have collectively positioned India as an appealing destination for global investors.

Looking ahead, focus shifts to key events, including US inflation data and upcoming tariff decisions. So, open Demat account with SMC Global Securities and invest as per your investment objective and risk profile.

Reference:
SMC Global Securities’ Research Team

Author: All Content is verified by SMC Global Securities.