Friday's Markets Update (March 21, 2025)

22 Mar 2025 by rate3

On Friday, major indexes closed in the green thanks to technical volatility, aided by a "quadruple witching."

World's Markets:

EU stocks declined as they corrected after a boost from sharply increased military spending. The manufacturing climate in France deteriorated slightly, primarily due to the food and beverages sector. Overall, this indicator has been gradually diminishing after a sudden jump in November 2024. This decline was accompanied by a drop in consumer confidence in Spain.
Brazilian equities gained slightly, securing a modest weekly rise as traders reacted positively to budget approval and signals from the central bank regarding monetary policy.
Indian stocks continued their March relief rally for the fifth day, supported by strong economic data.
Chinese stocks corrected for the third consecutive day on profit-taking.
Thailand recorded its largest trade surplus in 1.5 years, with exports jumping 14% year-on-year, driven by growing transits, particularly in industrial and agricultural products delivered to America (18.3%), China (22.4%), and the EU (4.5%).
Commodities and Currencies:

The dollar index rebounded after the Fed held its interest rates, despite Powell describing the inflationary effects of tariffs as "transitory."
Oil prices edged higher due to new tariffs targeting Iranian exports to China.
Steel prices slipped to a 2-month low following a 10% drop in China's housing investments, as Taiwan, Vietnam, South Korea, and Brazil imposed tariffs on mills' offload sales. Meanwhile, China plans to build up its strategic reserves of key industrial metals, including cobalt, copper, nickel, and lithium.
Crypto:

Following the tariff-induced market turmoil, major coins and tokens have been trading close to their yearly support levels, with BTC below 85K and ETH below 2K.
The State Of Markets: Mixed, as markets took a technical pause while some traders fixed their gains or "bought the dip" amid geopolitical uncertainties and the absence of major news.

On Week 8, investors will watch Fed speeches, key data like PCE, PMIs, and GDP, plus housing updates. Global focus includes March PMIs, inflation reports, and economic indicators from Germany, Canada, the UK, and Mexico's rate decision.