Insights

Weekly Market Commentary – 28th February

3 March 2025

This week markets were spooked by surveys indicating that the spectre of a trade war has sapped American consumers of their confidence and spiked inflation expectations. Stocks slipped as the stream of gloomy data trickled in while bonds rallied. President Donald Trump fanned the flames mid-week by threatening to slap the EU with a 25% tariff. He approved 25% levies on Canada and Mexico, and also a 10% tariff on Chinese imports. These were due to go into effect in March, policies which he had paused last month. This sent stocks in the US, Asia and Europe downward. Even Nvidia’s stellar fourth quarter financial performance, whose blowout results often sent stocks soaring, could not turn the sentiment. Nvidia plunged 8.4%, losing its vaunted $3tn market capitalisation crown in the process, and other big tech firms languished.