Tuesday's Markets Update (March 18, 2025)

18 Mar 2025 by rate3

On Tuesday, equities are down due to technical volatility in response to mixed economic data, with increasing industrial production and soaring housing starts (a seasonal effect resulting from spring resurgence after delays due to snowstorms and low temperatures), but declining building permits, which have reached a five-month low.

World's Markets:

EU markets are up, supported by peace talks and projected growth of government deficits. EU economic sentiment hit its highest level in eight months, primarily due to ECB easing, defense spending, and a German internal budget agreement, while the balance of trade plummeted to +1B euros, reaching a 2-year low. Spain's trade deficit climbed to a 2.5-year high due to a sharp contraction in auto and energy exports, primarily to Mexico (-20%) and France (-14%). Italy also recorded a steep drop in exports and a surge in imports (primarily natural gas).
Brazilian business sentiment remained subdued, hanging near 2-year lows. The local market went red due to a tax exemption bill and hawkish anticipations regarding the Seltic rate.
Indian equities soared to a four-week high on China's stimulus measures, low inflation, and expected RBI rate softening.
China's indexes increased following the CCP Economic briefing and technical volatility led by the tech sector.
The Tertiary Industry Index—Japan's key business indicator published by the Ministry of Economy, Trade and Industry (METI)—ticked down to 101.6 (100 = the 2015 base), marking the seventh month of contraction. The yen fell to a two-week low as the BoJ is expected to hold its rate steady. Local stocks rallied.
Commodities and Currencies:

Gold soared to new all-time highs due to a combination of geopolitical instability and global economic slowdown. Oil continues to rise amid the conflict in the Red Sea. The dollar remains at a five-month low.
Crypto:

BTC, ETH, and SOL are back in the red, continuing to follow the trend of equities.
The State Of Markets: Mixed, American markets are in the red, mostly due to technical volatility compounded by mixed economic data in advance of the Fed's rate decision. The EU grew on defense spending, while Asian stocks soared, primarily on enthusiasm about renewed Chinese economic growth.