As shown in the accompanying table, it was a broadly negative week for global financial markets. US markets struggled this week, with major indices closing lower as investors reacted to a combination of persistent inflation data and ongoing trade policy concerns.
This morning, UK headline CPI reading slowed from 3.0% in January to 2.8% in February, while core CPI inflation, which excludes volatile items such as food and energy, slowed to 3.5% from 3.7%. However, despite this cooling, we expect inflation to speed up again in the coming months due to rising energy prices and the soon-to-be increase to employer national insurance contributions and minimum wage as this is likely be passed on to consumers.
This Debt Awareness Week (24th – 30th March), WEALTH at work – a leading financial wellbeing, retirement and workplace savings specialist, are encouraging employers to support employees to tackle money issues and build a saving safety net.
This Debt Awareness Week (24th – 30th March), WEALTH at work – a leading financial wellbeing, retirement and workplace savings specialist, are encouraging employers to support employees to tackle money issues and build a saving safety net.
This Debt Awareness Week (24th – 30th March), WEALTH at work – a leading financial wellbeing, retirement and workplace savings specialist, are encouraging employers to support employees to tackle money issues and build a saving safety net.
As you can see, markets broadly closed the week higher, with interest rate decisions taking centre stage. Investors got a boost Wednesday as the Federal Reserve held interest rates steady at 4.25%-4.5% and signalled confidence in short-term stability. In response, US stocks rallied, closing higher as the Fed met expectations.
China’s economy showed promising signs in early 2025, with retail sales rising 4%, driven by the government’s strong efforts to boost domestic consumption and mitigate trade tensions with the US. Industrial production also grew by 5.9%, and fixed asset investment exceeded expectations with a 4.1% increase, adding a positive momentum to the outlook.
It’s been another week full of trade rhetoric. Mid-week, the US imposed 25% tariffs on steel and aluminium imports. The duties were announced in mid-February as stock market investors cheered President Trump’s ‘America first’ agenda which saw only Mexico, Canada, and China come under initial pressure.
On Friday, Chinese policymakers lowered their inflation target to around 2%. By Monday, the National Bureau of Statistics reported that February’s Consumer Price Index (CPI) had fallen 0.7% year over year, with core inflation—excluding food and energy—declining by 0.1% last month.
As shown in the accompanying table, financial markets broadly declined this week. Ongoing uncertainty—markets’ greatest foe—and shifting policies weighed on investor sentiment.
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