Wednesday's Markets Update (March 26, 2025)

26 Mar 2025 by rate3

On Wednesday, equities were in the red due to new levies on auto woes, despite manufacturing orders growing in February by almost 1%, surpassing the forecast of a 1% decline. This growth was boosted by defense aircraft and parts, which increased by 9%. However, it was offset by a 0.3% drop in non-defense capital goods orders attributed to tariffs.

World's Markets:

EU markets were down due to new anti-economic growth initiatives from Trump, with the tech, auto, and pharma sectors taking the biggest hits. Consumer confidence in France fell across a range of measured parameters, such as financial outlook and standard of living, which worsened further with joblessness reaching a 2021 high. At the same time, this indicator remained below its long-term average of 100 but had been continuously rising since 2022 before a dip in 2025.
The Spanish economy grew by 3.4% in Q4 2024, decelerating from 3.5% in the previous quarter, with most growth coming from primary industries (agriculture and mining). Meanwhile, consumer confidence hit an 11-month low, with expectations regarding the economic situation deteriorating.
Foreign investment in Brazil reached a year-high of $9B, compared to a long-term average of $4B. The local market rose in response to lower rate expectations combined with rebounding construction confidence. Indian traders took profits after a 3-week rally, with banks experiencing the most downside.
Chinese stocks declined due to volatility and looming tariffs, while Japan's 10-year bond yield reached a 16-year high of 1.59% on the Bank of Japan's continued strengthening, as economic growth exceeded forecasts. The BoJ raised its rate to 0.5% in January, the highest in 17 years.
Commodities and Currencies:

Oil prices jumped to a four-week high due to Trump's threats of levies on Venezuela oil buyers. The dollar index neared a three-week high amidst global uncertainties.
Crypto:

BTC, ETH, and SOL fluctuated around their Tuesday levels, following the trends in the stock market.
The State Of Markets: Mostly down, world's equities declined on Trump's trade war new initiatives.