Friday's Markets Update (March 14, 2025)

14 Mar 2025 by rate3

On Friday, markets are on the rise as investors' worries about a government shutdown ease, coupled with expectations of the Fed's shift towards more active rate reduction. This comes as consumer sentiment plummets to 2022 lows, with people's expectations deteriorating across all economic facets, including personal finance, labor, and inflation. Inflation surged to 4.9% from 4.3% this year and is projected to rise to 3.9% from 3.5% over the next five years—the largest monthly increase in 33 years—impacting business conditions. Meanwhile, current economic conditions remain, objectively, little changed.

World's Markets:

EU equities followed America's upward trend on a brief surge of trader optimism. German stocks jumped due to an agreement between Merz and the Social Democratic Party (SD) to change the state's borrowing rules, which will allow for increased spending. Spanish inflation has risen for the fifth consecutive month, reaching 3% and nearing yearly highs, driven primarily by energy prices.
The Brazilian real continues to strengthen on an improving government budget, while producers' inflation eased for the twelfth consecutive month to nearly zero, with the food sector contributing the most. The stock market closed in the green, though retail sales continued to decline for the third month in a row.
Foreign investments in the Chinese economy sank by more than 20%, marking the sharpest decline since 2009. Investors are disillusioned with the CCP lack of stimulus and excessive control over the economy. Chinese stock indexes rebounded due to technical factors, helped by expectations of stimulus promises following a conference with officials on Monday.
Commodities and Currencies:

The dollar index edged down as gold prices hit a record closing above 3000.
Crypto:

BTC, ETH and SOL registered an uptick after stocks but have still maintained their bearish trend.
The State Of Markets: In Green, primarily due to a technical correction, along with minor positive shifts in internal political settlements and an optimistic interpretation of minor economic data.

On Week 12, investors will focus on the Fed's rate decision on Wednesday, economic projections, and key data like retail sales and housing indicators. Globally, rate decisions from Japan, China, the UK, and others, along with inflation and economic data, will be closely monitored.