Friday's Markets Update (March 28, 2025)

28 Mar 2025 by rate3

On Friday, monthly core PCE jumped to 2.8%, the highest increase in a year, up from 2.7%, leading to a sharp decline in stock indexes. This was compounded by consumer sentiment dropping to its lowest level since November 2022, as expectations worsened for personal finances, business conditions, unemployment, and inflation.

World's Markets:

The European Union's economic sentiment also fell to its lowest level in three months. Germany's unemployment rate reached 6.3%, the highest level since September 2020. EU equities reacted by declining for the third consecutive day, with banks and energy stocks leading the downturn.
Brazil's unemployment rate increased to 6.8%, up from 6.5% the previous month, while inflation turned to disinflation at -0.34% for the first time in a year. The real depreciated as equities fell.
India's government budget deficit stood at 13 trillion INR (with expenses at 39 trillion and revenues at 26 trillion). Meanwhile, infrastructure output slowed to an increase of 2.9%, down from 5.1% year-on-year, with coal, refinery products, and cement leading the decline. Local stocks decreased.
Chinese equities fell despite Xi Jinping's promises to business leaders to support the economy, as traders anticipated PMI data.
The Bank of Japan signaled intentions for further rate hikes as Japanese inflation reached 2.4%. Stocks responded by declining.
Argentina's current account shifted drastically to a surplus of 4B USD, driven by inflows from the success of free-market reforms, along with the largest expansion in economic activity since May 2022.
Commodities and Currencies:

Gold reached a new all-time high, marking its fourth consecutive week of gains. The dollar index is down amid growing economic concerns.
Crypto:

BTC, ETH, and SOL are in deep red, as traders continue to knee-jerk sell each time stocks decline.
The State Of Markets: In Red, the world's major market indexes responded negatively to the worsening global and local macroeconomic picture, led by a sharp increase in core PCE index.

On Week 14, investors will watch trade war updates, including new tariffs starting April 2, and key economic data like jobs, ISM PMIs, China/Japan/Eurozone indicators, and German factory orders.