- Brent crude rose 2% to $73.7 a barrel
- Gold fell 0.7% to 1,337.8 an ounce
- US and European treasuries decline, yields rise
- China and the US look towards reconciliation on trade
After a broad sell-off across many asset classes in February, volatility continued into March, with equity markets declining and government bonds rallying. Risk markets were impacted by the prospects of a US-China trade war with President Trump continuing to push his ‘America First’ philosophy. Emerging market and developed market equities fell, with emerging markets marginally outperforming. US equities fell 2.6% during the month, taking Q1 2018 returns to -0.9%. A key contributing factor seemed to be President Trump’s imposition of tariffs on imports of Chinese steel and aluminium and proposals for further tariffs on a wide range of goods.
China immediately responded, imposing tariffs on several US imports, including wine. This led to worldwide concerns of a potential trade war, which could have implications for global growth. In addition to this, tech stocks, among the strongest performers in 2017, suffered sharp share price declines. This followed a serious data breach at Facebook which led to a series of governments seeking to tighten the loose regulation of companies in the sector, while tax authorities are seeking to impose more effective taxes.
- Brent crude rose 8.2% to 72.6 a barrel
- Gold rose 1.1% to 1,346 an ounce
- Global stocks weather escalating geopolitical tensions
- Safe haven assets gained and steadied
- Brent crude rose 6.4% last week to $70.4 a barrel
- Gold rose 2.5% to 1,347.4 an ounce
- Global equity indices see their biggest slump in 5 weeks
- Safe haven assets gain